All of the following can be used as an allocation base for calculating factory overhead rates except:
A) direct labor dollars
B) direct labor hours
C) machine hours
D) total overhead costs

Question

Quizplus · Accepted Answer

Total overhead costs cannot be used as an allocation base as it represents the total amount of overhead to be allocated, and is not a specific activity or cost driver that can be used to allocate overhead to individual products or services. Direct labor dollars, direct labor hours, and machine hours are commonly used as allocation bases in calculating factory overhead rates.

All of the Following Can Be Used as an Allocation