In traditional costing systems, overhead is generally applied based on
A) direct labor.
B) machine hours.
C) direct material dollars.
D) units of production.

Name: In traditional costing systems, overhead is generally applied based on A) direct labor. B) machine hours. C) direct material dollars. D) units of production.
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Question

Quizplus · Accepted Answer

Traditional costing systems often allocate overhead based on direct labor hours or costs, as it was historically assumed that overhead was closely related to labor.

In Traditional Costing Systems, Overhead Is Generally Applied Based on