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Question 10 2 pts Alphabet Inc. produces three products: Aa, Bb and Cc. The information provided below relates to the company's most recent financial
Question 10 2 pts Alphabet Inc. produces three products: "Aa", "Bb" and "Cc". The information provided below relates to the company's most recent financial year that has just ended. Machine maintenance costs (an indirect cost of each unit of output produced): $550,000 Number of machine hours per unit of output: Product Aa Product Bb Product Cc Number of direct labour hours per unit of output: Product Aa Product Bb Product Cc Number of units of output produced Product Aa Product Bb Product Cc 3 hours per unit 3 hour per unit 3 hour per unit 4 hours per unit 2 hours per unit 1 hour per unit 800 units 400 units 200 units Which of the following statements about the allocation of Alphabet's machine maintenance costs to units of output is likely to be true: 1. Using direct labour hours and units of output as the allocation base will result in an equally accurate (or equally inaccurate) allocation of machine maintenance cost 2. Using machine hours and units of output as the allocation base will result in an equally accurate (or equally inaccurate) allocation of machine maintenance cost 3. Using machine hours and direct labour hours as the allocation base will result in an equally accurate (or equally inaccurate) allocation of machine maintenance cost Statement 1 only Statement 2 only Statement 3 only
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