A Managerial Accountant Has Determined the Following Relationships Between Overhead

Multiple Choice

A managerial accountant has determined the following relationships between overhead and several possible bases: $$\begin{array} { l c } \text { Basis } & \text { Corralation with Total Overhead } \\\hline \text { Direct labour hours } & 0.842 \\\text { Direct labour dollars } & 0.279 \\\text { Machine hours } & - 0.837 \\\text { Employee minutes in coffee breaks } & - 0.243\end{array}$$ What is the best basis for overhead application?

A) direct labour hours
B) coffee breaks
C) direct labour dollars
D) machine hours