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Explain how a design change for a Boeing aircraft creates extra overhead cost that is unrelated to the number of direct labor hours needed to

  1. Explain how a design change for a Boeing aircraft creates extra overhead cost that is unrelated to the number of direct labor hours needed to build the aircraft.

  2. Assume that overhead cost is allocated to products at Boeing based on direct labor hours. Would this system result in too many design changes or too few design changes? Explain.

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