Which allocation bases would be best for allocating overhead

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Problem 1) Having watched the video, "How Jeans are Made," which of the following allocation bases would be best for allocating overhead?

A.Machine hours because the jeans are made mostly by machine
B.Direct labor hours because there is a large amount of labor that goes into making the jeans
C.Square footage because each production process uses a significant amount of space

Problem 2) A job that shows low profitability may be the result of:

A.Wasting direct materials
B.Inefficient direct manufacturing labor
C.Underpricing the job
D.All of these answers are correct

Reference no: EM132683883

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