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Guerra Electronics

38. Guerra Electronics manufactures a variety of electronic gadgets for use in the home. Which of the following would probably be the most accurate measure of activity to use for allocating the costs of inspecting the finished products at Guerra?


A) machine-hours.
B) direct labor-hours.
C) inspection time.
D) number of inspections.

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Answer: C because the inspection time will tell how much time Guerra ...

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This solution is comprised of a detailed explanation to answer allocation of cost.