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Help Save & Exit Submit As the manager of the Muesli AG manufacturing facility, the best explanation for you choosing to use a plant -
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As the manager of the Muesli AG manufacturing facility, the best explanation for you choosing to use a plantwide overhead rate using machine hours as the allocation base is because:
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The assembly department and the packaging and storage departments are in separate buildings.
The machines at Muesli AG run hours a day, seven days a week.
Overhead costs are caused primarily by machine hours throughout the muesli manufacturing process.
Most of the overhead costs in the assembly department are related to machine hours and most of the overhead costs in the packaging and storage department are related to direct labor hours.
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