The choices below depict five costs of Benton Corporation and a possible driver for each cost. Which of these choices likely contains an inappropriate cost driver?
A) Gasoline consumed; number of miles driven.
B) Manufacturing overhead incurred in a heavily automated facility; direct labor hours.
C) Sales commissions; gross sales revenue.
D) Building maintenance cost; building square footage.
E) Human resources department cost; number of employees.

Question

Quizplus · Accepted Answer

Manufacturing overhead incurred in a heavily automated facility would likely have a driver that is specific to the machinery being used, such as machine hours or units produced, rather than direct labor hours which may not be as directly related.

The Choices Below Depict Five Costs of Benton Corporation and a Possible