A. machine hours
B. flexible hours
C. variable hours
D. fixed hours
✅ The correct answer is option A.
Cost allocation base used by an operating manager is classified as machine hours. A machine-hour is a measurement used to apply factory overhead to manufactured goods. It is most applicable in machine-intensive environments where the amount of time spent in processing by a machine is the largest activity upon which overhead allocations can be based.
Cost allocation base used by an operating manager is classified as machine hours. A machine-hour is a measurement used to apply factory overhead to manufactured goods. It is most applicable in machine-intensive environments where the amount of time spent in processing by a machine is the largest activity upon which overhead allocations can be based.