Why Might a Company Use Direct Labor Cost as an Overhead

question 49

Essay

Why might a company use direct labor cost as an overhead allocation base rather than using direct labor hours?

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Definitions:

B and/ T Cell Formation

The development and differentiation of B cells and T cells, which are critical components of the adaptive immune system.

Self-antigens

Molecules produced by an organism's own body that, under normal circumstances, do not trigger an immune response.

Monocyte

Type of white blood cell; large phagocytic white blood cell that moves from the blood into tissues and becomes a macrophage.

Macrophage

A type of white blood cell that engulfs and digests cellular debris, foreign substances, and pathogens, playing a key role in the immune system.