Examlex
Which of the following would be the least likely cost driver for an activity such as product testing?
Direct Labor-Hours
Direct labor-hours refer to the total hours worked by employees directly involved in the production process, used as a basis for allocating labor costs to products.
Machine-Hours
The total hours that machinery is operated during a specific period for production purposes.
Departmental Predetermined Overhead Rates
These rates are calculated to allocate manufacturing overhead costs to specific departments, based on estimated or actual overhead and activity levels.
Machine-Hours
A measure of production time using machinery; used as a basis for allocating manufacturing overhead costs to products.
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