Leigh Is Hired by ABC Inc

question 6

Essay

Leigh is hired by ABC Inc. to prepare a software program for a company. She works at home, has hired her own assistants, receives no benefits from ABC, and pays her own taxes. When the work is completed, Leigh begins working for another company. Leigh and ABC have no agreement as to ownership of copyright in the final work. Discuss which party owns the copyright in the software program.

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Definitions:

Direct Materials

Direct materials are raw materials that can be directly attributed to the production of goods or services and are a critical component of manufacturing costs.

Overhead Rate

A measure used to allocate indirect costs to produced goods, calculated by dividing total overheads by an allocation base like labor hours or machine hours.

Direct Labor Cost

The cost of labor directly involved in the production process, excluding indirect expenses like maintenance.

Predetermined Overhead Rate

This rate is used to allocate overhead costs to products or services based on a specific formula, often involving direct labor hours or direct material costs, aiding in the budgeting and costing process.