Direct labor hours would be the most appropriate cost allocation base for a Machining Department that uses machine robotics extensively.

Question

Quizplus · Accepted Answer

Since the Machining Department uses machine robotics extensively, direct labor hours would not be an appropriate cost allocation base as the machines do not require direct labor to operate. A more appropriate cost allocation base would be machine hours, which takes into account the usage of the machinery.

Direct Labor Hours Would Be the Most Appropriate Cost Allocation