Factory overhead costs to jobs at alberto company

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Reference no: EM132071992

Alberto Manufacturing Company is in the process of developing a plant-wide overhead rate for the assignment of factory overhead costs to jobs. Alberto has two options for allocation base (cost drivers) direct labor hours (DLH) and direct materials cost (DMC). Alberto has compiled data for the past several months that are on the Excel file sheet named Cost Accounting. What is the appropriate allocation base for the assignment of factory overhead costs to jobs at Alberto Company? Why? Refer to your computed R Squares in your answer and the interpretation.

Overhead Cost	DLH	Materials Cost
$678,145	948	$491,618
$658,200	767	536,311
$737,981	927	715,081
$618,309	758	473,742
$638,254	853	482,680
$538,527	569	491,618
$797,818	805	759,774
$578,418	626	482,680
$598,363	683	487,149
$718,036	773	581,003
$698,090	760	625,696

Reference no: EM132071992

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