In traditional costing systems, overhead is generally applied based on
A)direct labour for job-order costing, and machine hours for process-costing.
B)direct material for job-order costing, and direct labour for process-costing.
C)factory usage for both job-order costing and process-costing.
D)units of production.

Question

Quizplus · Accepted Answer

Traditional costing systems typically apply overhead based on direct labor for job-order costing, where costs are assigned to specific jobs or batches, and on machine hours for process-costing, which is used when similar items are mass-produced.

In Traditional Costing Systems, Overhead Is Generally Applied Based on