Machine hours and direct labor hours are examples of an overhead allocation base.

Here's why:

1. Machine hours: This is a common overhead allocation base, especially in manufacturing environments where machines are used. The logic is that the more hours a machine is used, the more overhead costs (like depreciation, electricity, and maintenance) it will incur.

2. Direct labor hours: This is another common overhead allocation base. The idea is that the more hours employees work, the more overhead costs (like supervision, fringe benefits, and supplies) they will generate.

On the other hand, machine cost and indirect labor hours are not typically used as overhead allocation bases. Machine cost is a type of overhead cost itself, not a measure of activity that would drive overhead costs. Indirect labor hours could potentially be used as an overhead allocation base, but it's not as common because indirect labor costs are often included in overhead costs.

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Machine hours and direct labor hours are examples of an overhead allocation base.

Here's why:

1. Machine hours: This is a common overhead allocation base, especially in manufacturing environments where machines are used. The logic is that the more hours a machine is used, the more overhead costs (like depreciation, electricity, and maintenance) it will incur.

2. Direct labor hours: This is another common overhead allocation base. The idea is that the more hours employees work, the more overhead costs (like supervision, fringe benefits, and supplies) they will generate.

On the other hand, machine cost and indirect labor hours are not typically used as overhead allocation bases. Machine cost is a type of overhead cost itself, not a measure of activity that would drive overhead costs. Indirect labor hours could potentially be used as an overhead allocation base, but it's not as common because indirect labor costs are often included in overhead costs.

Knowee AI · Accepted Answer

Machine hours and direct labor hours are examples of an overhead allocation base.

Here's why:

1. Machine hours: This is a common overhead allocation base, especially in manufacturing environments where machines are used. The logic is that the more hours a machine is used, the more overhead costs (like depreciation, electricity, and maintenance) it will incur.

2. Direct labor hours: This is another common overhead allocation base. The idea is that the more hours employees work, the more overhead costs (like supervision, fringe benefits, and supplies) they will generate.

On the other hand, machine cost and indirect labor hours are not typically used as overhead allocation bases. Machine cost is a type of overhead cost itself, not a measure of activity that would drive overhead costs. Indirect labor hours could potentially be used as an overhead allocation base, but it's not as common because indirect labor costs are often included in overhead costs.

hich of the following are examples of an overhead allocation base:Multiple select question.machine costmachine hoursindirect labor hoursdirect labor hours

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