What are the benefits of using direct labor as an overhead

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Reference no: EM131628905

Direct labor cost is usually taken as the basis of allocation of manufacturing overheads to products. Keeping this in mind, respond to the following:

What are the benefits of using direct labor as an overhead allocation basis?

How has the usefulness of direct labor, as the primary basis for allocating overheads to products, been reduced in recent industrial history?

Reference no: EM131628905

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