Which of the following is NOT possible to use as a cost allocation base for manufacturing overhead?
A)direct labour dollars
B)direct labour hours
C)direct material dollars
D)direct labour hours or dollars
E)indirect labour hours

Question

Quizplus · Accepted Answer

Indirect labour hours cannot be used as a cost allocation base because they are part of the overhead costs themselves, not a base for allocating overhead.

Which of the Following Is NOT Possible to Use as a Cost