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A. Several well-differentiated products are manufactured.
B. Direct labor costs are low.
C. Direct material costs are large relative to direct labor costs incurred.
D. Only one product is manufactured.
Option D is the right answer.
d because
units of production is not an appropriate overhead allocation base when several well-differentiated products are manufactured. Whether direct labor cost is high or low is not relevant in determining whether units of production is an appropriate overhead allocation base
Option D >>>>>>>>>>>>>>> Only one product is manufactured.
