Final answer:
False. Direct labor-hours is not the only manufacturing overhead cost driver.
Step-by-step explanation:
False. It is often overly simplistic and incorrect to assume that direct labor-hours is a company's only manufacturing overhead cost driver. While direct labor-hours are an important factor in determining manufacturing overhead costs, there are other cost drivers that also need to be considered. These can include machine hours, units produced, or even the complexity of the manufacturing process.
For example, if a company uses highly automated machinery that requires significant maintenance and repair, the cost driver may be machine hours rather than labor hours. Similarly, if a company produces a variety of products with different labor requirements, the cost driver may be units produced or the complexity of the manufacturing process.
Therefore, it is important for companies to analyze their specific production processes and identify the appropriate cost drivers for their manufacturing overhead costs.