When a Manufacturing Company Has a Highly Automated Manufacturing Plant

question 47

Multiple Choice

When a manufacturing company has a highly automated manufacturing plant producing many different products,what is probably the most appropriate basis of applying overhead costs to work-in-process?

• A) Direct labor hours.
• B) Direct labor dollars.
• C) Machine hours.
• D) Cost of materials useD.
• Machine hours would more closely reflect the usage of the automated equipment.

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Definitions:

Stimulant

A substance that raises levels of physiological or nervous activity in the body, often used to increase alertness or energy.

Nembutal

A barbiturate drug used primarily in the past for sedation, inducing sleep, or as a pre-anesthetic agent, known for its potential for dependence and overdose.

Seconal

A brand name for secobarbital, a barbiturate drug used as a sedative and hypnotic medication.

Morphine

A powerful opiate analgesic drug derived from the opium poppy, used to relieve severe pain.