In a Labor-Intensive Company in Which More Overhead Is Used

question 99

Multiple Choice

In a labor-intensive company in which more overhead is used by the more highly skilled and paid employees, which activity base would be most appropriate for applying overhead to production?

• A) Direct labor cost.
• B) Direct material cost.
• C) Direct labor hours.
• D) Machine hours.

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Definitions:

Atlantic Trade Routes

The sea lanes and passages across the Atlantic Ocean used for the exchange of goods and slaves between the Americas, Europe, and Africa.

Plantation Economy

An economic system heavily based on agricultural production, often on a large scale, specializing in cash crops, and reliant on the labor of enslaved or indentured workers.

Colonization

The action or process of settling among and establishing control over the indigenous people of an area, often leading to the exploitation and cultural assimilation of those people.