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 machine robotics are extensively used in the Machining Department, it would be appropriate to allocate costs based on the usage of the robotics rather than the direct labor hours. A more appropriate cost allocation base for this department would be machine hours or the number of parts produced.

Direct Labor Hours Would Be the Most Appropriate Cost Allocation