As manufacturing overhead costs cannot be traced to products a method must be developed for assigning them to products. Common bases for assignment are all of the following except:

Question

Quizplus · Accepted Answer

Direct labour cost, direct labour hours, and machine hours are all common bases for assigning manufacturing overhead costs to products. Direct labour hours plus direct machine hours is not a common base for assigning overhead costs.

As Manufacturing Overhead Costs Cannot Be Traced to Products a Method