Direct Labor Hours Are a Good Basis for Applying Overhead

question 98

Multiple Choice

Direct labor hours are a good basis for applying overhead when

• A)most direct laborers are doing the same type of work and use about the same amount of low-level technology.
• B)the process is very capital intensive.
• C)labor is a very small part of total cost.
• D)some labor is manual and other labor uses very expensive equipment.

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