For a manufacturing firm that produces multiple families of products requiring various combinations of different types of parts, what would be the best allocation base for human resource adminstration costs?
A) direct labor hours
B) electricity costs
C) number of parts purchased
D) machine hours

Question

Quizplus · Accepted Answer

Direct labor hours would be the best allocation base for human resource administration costs in a manufacturing firm that produces multiple families of products requiring various combinations of different types of parts. This is because the administration of human resources is directly related to the human labor required in the production process. Hence, allocating the costs based on direct labor hours would provide a more accurate reflection of the resource required to carry out HR administration tasks.

For a Manufacturing Firm That Produces Multiple Families of Products