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7 June, 18:30

In calculating a predetermined overhead rate, a recent trend in automated manufacturing operations is to choose an activity base related to

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  1. 7 June, 18:47
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    Answer: c. machine hours.

    Explanation:

    In reference to Automated Operations, the Activity base that is usually used to in determining a pre-determined overhead rate are Machine hours.

    It is standard practice to relate overhead to the Direct Labor involved in the production of a commodity and since in this case the direct Labor mostly consists of Machines (Automated) then it is best to relate activities to the Machine hours involved instead.
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