Which of the following would be least likely to be used as an allocation base in a company that applies a single plantwide rate?
A) Machine hours.
B) Direct material costs.
C) Direct labor cost.
D) Direct labor hours.

Question

Quizplus · Accepted Answer

Direct material costs are less likely to be used as an allocation base because they do not directly correlate with the overhead costs in the same way that machine hours, direct labor cost, or direct labor hours might.

Which of the Following Would Be Least Likely to Be