Question
Neat Tables makes two types of tables. The standard one requires 2 machine hours, while the deluxe model requires the same number of machine hours
Neat Tables makes two types of tables. The standard one requires 2 machine hours, while the deluxe model requires the same number of machine hours plus 5 additional labor hours per table to produce carving details. Production of both tables is about the same. Overhead costs including rental of factory, utilities, and supervisor salary, are assigned based on number of tables produced. You are hired to evaluate if it would be more appropriate to use another allocation base (like machine or labor hours) to apply overhead to the tables. Discuss why or why not the current allocation basis is reasonable.\ \ After submitting your answer, comment on at least one other post in this discussion board that you agree with, and at least one other post that you may not agree with or would take some issue with (for 80% of the grade), indicating the reasons for your response. Please also comment on the posts that disagree with your response indicating if you agree with the comments or not and the reasons for that. Add posts to the discussion to get a higher grade.
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