If the overhead to be absorbed was the foremans salary the most likely appropriate basis for absorption would be _______________.

Weight of material

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Direct labour hours

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Selling price

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Prime cost

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Solution

The correct option is B Direct labour hours
Foreman salary is a cost of service department. Cost of service department to be apportioned on to the production departments at certain logical proportion.
Direct Labour hour is the suitable and logical base for apportionment of foreman salary.

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If the overhead to be absorbed was the foremans salary the most likely appropriate basis for absorption would be _______________.

The correct option is B Direct labour hoursForeman salary is a cost of service department. Cost of service department to be apportioned on to the production departments at certain logical proportion. Direct Labour hour is the suitable and logical base for apportionment of foreman salary.

The correct option is B Direct labour hours
Foreman salary is a cost of service department. Cost of service department to be apportioned on to the production departments at certain logical proportion.
Direct Labour hour is the suitable and logical base for apportionment of foreman salary.