At Westonci.ca, we provide reliable answers to your questions from a community of experts. Start exploring today! Discover a wealth of knowledge from experts across different disciplines on our comprehensive Q&A platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

A department that is capital-intensive most likely would use a predetermined departmental overhead rate based on which of the following activity bases?
a. units of direct material used
b. direct labor hours
c. direct labor cost
d. machine hours


Sagot :

Answer:

D)machine hours

Explanation:

It should be noted that department that is capital-intensive most likely would use a predetermined departmental overhead rate based on

machine hours.

A machine-hour can be regarded as measurement that is been used in applying factory overhead to manufactured goods. It's application is usually found in machine-intensive environments, environment whereby the amount of time that is expelled on processing by a machine is been regarded as largest activity that overhead allocations can be said to have based upon. Machine hour rate can be gotten by making division of the total running expenses of a machine by estimated number of hours for the machine to work at a specific period