Allocation:
A) is most often used for direct material costs.
B) is most often used for manufacturing overhead costs.
C) is most often used for direct labor costs.
D) is most often used for nonmanufacturing costs.

Question

Quizplus · Accepted Answer

Allocation is most often used for manufacturing overhead costs. This is because manufacturing overhead costs are indirect costs that cannot be traced directly to a specific product or department. Therefore, allocation is used to allocate these costs to each product or department based on a cost driver such as direct labor hours or machine hours.