Question
Why do we use Total Direct Labor Hours to find the Single Plant-wide Overhead rate(SPOR)? Factory overhead consists of Indirect Labor and Indirect material. Costs
Why do we use Total Direct Labor Hours to find the Single Plant-wide Overhead rate(SPOR)?
Factory overhead consists of Indirect Labor and Indirect material.
Costs related to Direct Labor supposed to go directly to Goods in Process inventory.
Why are we using direct labor to calculate the estimates for Factory Overhead, instead of Indirect Labor?
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
25th edition
978-1285069609, 1285069609, 978-1133607601
