Which of these possible bases for allocating overhead costs is most commonly used in practice?
A) Direct labour cost.
B) Direct labour hours.
C) Machine hours.
D) Units produced.

Question

Quizplus · Accepted Answer

Direct labour hours are commonly used in practice as a basis for allocating overhead costs because they are easy to measure and often correlate well with the amount of overhead incurred.

Which of These Possible Bases for Allocating Overhead Costs Is