A Managerial Accountant Has Determined the Following Relationships Between Overhead

question 23

Multiple Choice

A managerial accountant has determined the following relationships between overhead and several possible bases: $\begin{array}{lr}\text { Basis } & \text { Correl ation with Total Overhead } \\\text { Direct labour hours } & 0.842 \\\text { Direct labour (£) } & 0.279 \\\text { Machine hours } & -0.837 \\\text { Empl oyee minutes in coffee breaks } & -0.243\end{array}$ The best basis for overhead application is

• A)direct labour hours.
• B)coffee breaks.
• C)direct labour (£)
• D)machine hours.

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