A widely used activity base for developing factory overhead rates in highly automated settings is a. machine hours b. direct materials c. direct labor hours d. direct labor dollars

Question

Adonis Farrell

Business

25 October, 22:29

A widely used activity base for developing factory overhead rates in highly automated settings is a. machine hours b. direct materials c. direct labor hours d. direct labor dollars

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Answers (1)

Know the Answer?

Kaeden Dickson · Answer 1

a. machine hours

Explanation:

Machine hours -

It is the measurement adapted to apply factory overhead to the manufactured goods, is referred to as machine hours.

In the field of machine environment,

the time consumed for processing the machine is the maximum.

In case there is lesser machines in the company, the labor hours would be more.

Hence, from the given information of the question,

The correct option is a. machine hours.