Harris, Inc., has just completed job nos. 78 and 79, which were similar in terms of complexity, production processes, and units manufactured. Job no. 78 was manufactured by Joe Barton who earns $14 per hour, whereas job no. 79 was completed by Susan Franklin who earns $20 per hour. If Joe and Susan are equally efficient, would the company be better off using direct labor cost or direct labor hours as the cost driver in its predetermined overhead rate? Please clearly explain the rationale for your answer.© BrainMass Inc. brainmass.com June 3, 2020, 11:45 pm ad1c9bdddf
Direct labor cost would be a much more accurate measure in determining the predetermined overhead rate. ...
The solution explains the concepts of job cost account for Harris Inc. All the steps are clearly explained and outlined. The answer is very easy to understand and can be followed along with anyone who has a basic understanding of the subject. Overall, an excellent response to the question.