Why is direct labor a poor base for allocating overhead in many companies?

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Managerial Accounting

ISBN: 978-0697789938

13th Edition

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

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Question Posted: Jun 28, 2011 06:34 AM

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Why is direct labor a poor base for allocating overhead in many companies?

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When direct labor is used as an allocation base for overhead it is implicitly assume...View the full answer

Managerial Accounting

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