Q192
Cost allocation base used by an operating manager is classified as
A.
machine hours
AnswerB.
flexible hours
C.
variable hours
D.
fixed hours
Answer: Option A
Solution
Answer: Option A
Solution:
Cost allocation base used by an operating manager is classified as machine hours. A machine-hour is a measurement used to apply factory overhead to manufactured goods. It is most applicable in machine-intensive environments where the amount of time spent in processing by a machine is the largest activity upon which overhead allocations can be based.