Final answer:
The labor-time record is the key document for tracking direct manufacturing labor. It's essential for accurate job costing, especially when determining the most cost-effective production technology based on machine and labor costs.
Step-by-step explanation:
The basic source document for direct manufacturing labor is the C) labor-time record. This record is vital in the realms of cost accounting and production management as it helps in tracking the time workers spend on various jobs or production processes. Accurate labor-time records ensure that labor costs can be correctly allocated to specific jobs or products, allowing for precise job costing.
In manufacturing settings, companies often use different production technologies based on factors such as cost-efficiency and productivity. When machine hours become cheaper, businesses might opt for technology that leans more towards automation. Conversely, if the cost of machines rises, there tends to be a shift toward technologies relying more on manual labor. The selection of production technology 2 or 3 as the most cost-effective option depends on these relative costs.