One of the disadvantages of the departmental and the plantwide overhead rate methods is that OA. technological advances may decrease the effect of direct labor hours as a percentage of total manufacturing costs. B. technological advances may increase direct labor hours as a percentage of total manufacturing costs. C. direct labor hours may decrease the effect of technological advances. D. direct labor hours may increase the effect of technological advances.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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am. 122.

One of the disadvantages of the departmental and the plantwide overhead rate methods is that
OA. technological advances may decrease the effect of direct labor hours as a percentage of total manufacturing costs.
B. technological advances may increase direct labor hours as a percentage of total manufacturing costs.
C. direct labor hours may decrease the effect of technological advances.
D. direct labor hours may increase the effect of technological advances.
Transcribed Image Text:One of the disadvantages of the departmental and the plantwide overhead rate methods is that OA. technological advances may decrease the effect of direct labor hours as a percentage of total manufacturing costs. B. technological advances may increase direct labor hours as a percentage of total manufacturing costs. C. direct labor hours may decrease the effect of technological advances. D. direct labor hours may increase the effect of technological advances.
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