Which of the following costs is the most likely to beallocated to a product in a traditional job costing environment?
A) Direct materials
B) Direct labor
C) Manufacturing overhead
D) Selling and administrative

Question

Quizplus · Accepted Answer

In a traditional job costing environment, manufacturing overhead costs (such as indirect materials and labor, rent, utilities, and depreciation) are allocated to a product using a predetermined overhead rate based on direct labor hours or machine hours. Direct materials and direct labor costs are easily traced to a specific product, while selling and administrative costs are not typically included in job costing.

Which of the Following Costs Is the Most Likely to Beallocated