MC 6 Which of the following is an example of an overhead allocation base?
A. Direct materials
B. Direct labor
C. Machine hours
D. Inventory costs
Answer:C
MC 6 Which of the following is an example of an overhead allocation base?
A. Direct materials B. Direct labor C. Machine hours D. Inventory costs
Explanation: An overhead allocation base is a measure of activity that is used to allocate overhead costs, such as machine hours or direct labor hours.