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ANEK [815]
3 years ago
5

In calculating a predetermined overhead rate, a recent trend in automated manufacturing operations is to choose an activity base

related to
Business
1 answer:
iragen [17]3 years ago
7 0

Answer: c. machine hours.

Explanation:

In reference to Automated Operations, the Activity base that is usually used to in determining a pre-determined overhead rate are Machine hours.

It is standard practice to relate overhead to the Direct Labor involved in the production of a commodity and since in this case the direct Labor mostly consists of Machines (Automated) then it is best to relate activities to the Machine hours involved instead.

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I think you've already figured this out for yourself, but I thought I'd answer anyway and maybe clarify some things.

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