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Activity based costing allocates overhead (indirect costs) to fixed costs based upon four different types of drivers. Which of the following is one of the cost drivers that serves as a basis of cost allocation? ​ a. number of units produced b. direct equipment costs c. number of labor hours d. quantity of materials used

Respuesta :

TomShelby

Answer:

c. number of labor hours

Explanation:

The direct labor hours metric can estimate the amount of time the manufacturing capacity was used for each product.

Consider the bulk unit number is not a good metric because; the products aren't homogeneous and use different quantities of materials.

Also, the direct equipment cost cannot be linked to production. The depreciation of the equipment is an overhead cost, not a cost driver.

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