Machine Usage in a Department Causes Most of the Overhead

question 120

Multiple Choice

Machine usage in a department causes most of the overhead costs such as depreciation expense,maintenance expense and repair expense.What is the most appropriate cost-allocation base for applying overhead costs to products?

• A) the number of machines
• B) the salvage value of the machines
• C) the average age of the machines
• D) the number of machine hours

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Definitions:

Memory

The ability of the mind to keep and retrieve knowledge.

Sensory Pleasure

Enjoyment derived from stimuli that affect the senses, such as tastes, smells, sounds, and textures.

Checking Rituals

Repetitive behaviors or mental acts that individuals feel compelled to perform to relieve anxiety, often associated with OCD.

Trust

Reliance on the integrity, strength, ability, surety, etc., of a person or thing; confidence.