For Each of the Following Activities,indicate an Appropriate Allocation Base

question 5

Essay

For each of the following activities,indicate an appropriate allocation base:
$$\begin{array} { | l | l | } \hline \text { Activity } & \text { Allocation Base } \\\hline \text { Materials purchases } & \\\hline \text { Machine set-ups } & \\\hline \text { Quality inspections } & \\\hline \text { Employee training } & \\\hline\end{array}$$

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Definitions:

Manufacturing Overhead Rate

The ratio used to allocate manufacturing overhead costs to products based on a cost driver, such as labor hours or machine hours.

Machine Hour

A unit of measure representing the operation of a machine for one hour, used in allocating manufacturing costs based on machine usage.

Plantwide Overhead Rate

A single rate used to allocate manufacturing overhead costs to all units produced, regardless of the product line.

Cost Driver

A factor that causes the cost of an activity or process to change, used in activity-based costing to allocate costs.