"Neat Tables" makes two types of tables. The standard one requires 2 machine, while the deluxe model requires the same number of machine hours plus 5 additional labor hours per table to produce carving details. Production of both tables is about the same?

Overhead costs including rental of factory, utilities, and supervisor salary, are assigned based on number of tables produced? You are hired to evaluate if it would be more appropriate to use another allocation base (like machine or labor hours) to apply overhead to the tables?

Discuss why or why not the current allocation basis is reasonable?

Answer rating: 100% (QA)

The current allocation basis of assigning overhead costs based on the number of tables produced may ... View the full answer