Which of the following would be the least appropriate allocation base for allocating overhead in a highly automated (i.e. ,capital-intensive)manufacturing company?
A) Electricity used.
B) Machine hours.
C) Direct labor hours.
D) Material consumeD.
Direct labor hours would be the least related allocation base to use in an automated environment between the alternatives provideD.

Question

Quizplus · Accepted Answer

In a highly automated manufacturing company, direct labor hours are less relevant because the production process relies more on machines than on human labor.

Which of the Following Would Be the Least Appropriate Allocation