The correct answer is D. Machine hour method.
In a machine dominated industry, the cost of machines is a significant portion of the total cost. Therefore, it is more accurate to allocate overhead costs based on machine hours than on other methods, such as direct labor hours or direct material costs.
The direct material cost method allocates overhead costs based on the cost of direct materials used in production. This method is not suitable for a machine dominated industry because it does not take into account the cost of machines.
The prime cost method allocates overhead costs based on the sum of direct materials and direct labor costs. This method is also not suitable for a machine dominated industry because it does not take into account the cost of machines.
The labor hour method allocates overhead costs based on the number of labor hours worked. This method is not as accurate as the machine hour method for a machine dominated industry because it does not take into account the fact that some machines may be more expensive to operate than others.
The machine hour method allocates overhead costs based on the number of machine hours used. This method is the most accurate method for a machine dominated industry because it takes into account the cost of machines.