Common allocation bases are a. direct labor dollars, direct labor hours, machine dollars b. direct labor dollars, direct labor hours, direct material dollars c. direct labor dollars, direct labor hours, machine hours d. machine dollars, direct labor dollars, direct labor hours

Question

Isabela Luna

Business

18 January, 21:22

Common allocation bases are a. direct labor dollars, direct labor hours, machine dollars b. direct labor dollars, direct labor hours, direct material dollars c. direct labor dollars, direct labor hours, machine hours d. machine dollars, direct labor dollars, direct labor hours

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Answers (1)

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Sage Brady · Answer 1

c. direct labor dollars, direct labor hours, machine hours

Explanation:

The allocation bases are the base through which the overhead cost is allocated on the basis of direct labor in dollars amount, direct labor hours, machine hours, occupied square foot, etc

The base of allocation is the allocation method through which the indirect cost is distributed to the departments like - production department, service department, etc