An Automotive Company Has Three Divisions

Multiple Choice

An automotive company has three divisions.One division manufactures new replacements parts for automobiles,another rebuilds engines,and the third does repair and overhaul work on a line of trucks.All three divisions use the services of a central payroll department.The best method of allocating the cost of the payroll department to the various operating divisions is

A) total labor hours incurred in the divisions.
B) value of production in the divisions.
C) direct labor costs incurred in the divisions.
D) machine hours used in the divisions.