/main uni Davis, Managerial Acceunting, 3 , Hil, and Dale is a dental office tha

Question

/main uni Davis, Managerial Acceunting, 3 , Hil, and Dale is a dental office that performs a veniety of dental services for its patients, For most services, the dental hygienists spend much more sime with the pacients than the dentists do. The company uses direct labor Lambert Industries is a leading manufacturer of perfumes. The entire mixing process for the perfumes is eutomated and cntrolled by highly sensitive computers. The company uses machine hours as ts manufecturing everhend Orestion Attempts: 0 of 4 used sav."LA"" ex Polica, # 2000-201 Dohn Mier & Sons. Inc. Am "yes Reserved. A Divsion ef bhn wier & Sara. Ine. o search

Explanation / Answer

1)The application of overhead using direct labor hours is inappropriate as the most activity used is based on patients visit .so overhead applicaton should be baded on number of patients visits /patients hours.

2)SInce the company is fully automated (full use of machine )use of machine hours as an activity driver is appropriate .

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