Which of the following would be the most appropriate base for allocating the costs of the maintenance department?
A) machine hours
B) direct labour hours
C) number of employees
D) square feet

Question

Quizplus · Accepted Answer

Machine hours are the most appropriate base for allocating the costs of the maintenance department because they are a measure of the activity that the maintenance department performs. The maintenance department is responsible for maintaining the machines in the factory, and the number of machine hours that are worked is a good indicator of the amount of work that the maintenance department has to do.

Which of the Following Would Be the Most Appropriate Base