Which of the following is an allocation base commonly used under the traditional methods for allocation of overhead costs?

A) Number of batches.

B) Direct labor-hours.

C) Indirect materials.

D) Number of customer orders.

Question

Ethen Clay

Business

19 January, 07:18

Which of the following is an allocation base commonly used under the traditional methods for allocation of overhead costs?

A) Number of batches.

B) Direct labor-hours.

C) Indirect materials.

D) Number of customer orders.

+4

Answers (1)

Know the Answer?

Giancarlo Garcia · Answer 1

Answer: Direct labor hours

Explanation: In simple words, direct labor hours refers to the standard amount of time that the labor takes to complete a task. It is a very common and has been used traditionally as an allocation base for the overhead costs.

Using this as a base, the accountant can allocate the overheads by allocating the per unit cost on the basis of direct labor hours worked in a particular span of time.

Hence, from the above we can conclude that the correct option is B.

Which of the following is an allocation base commonly used under the traditional methods for allocation of overhead costs?A) Number of batches.B) Direct labor-hours.C) Indirect materials.D) Number of customer orders.

Which of the following is an allocation base commonly used under the traditional methods for allocation of overhead costs?

A) Number of batches.

B) Direct labor-hours.

C) Indirect materials.

D) Number of customer orders.