3. Which of the following would be the least appropriate overhead allocation base for a highly automated manufacturer of computer chips? A. Machine hours B. Electricity consumption C. Direct labor hours D. Number of machine setups

4. Which of the following best describes a direct cost? A. A direct cost can easily be traced to a cost object. B. A direct cost is usually a fixed cost. C. A direct cost is synonymous with an overhead cost. D. A direct cost is usually allocated to a cost object.