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The best reason for using direct labor costs as an overhead application rate basis is:...

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Accounting

The best reason for using direct labor costs as an overhead application rate basis is:

a) Because all companies have labor costs, there is usually a direct relationship between the labor costs and overhead.

b) Since labor costs are routinely collected by all companies, the data is readily available.

c) Since employees keep track of their time on a time ticket, they can apply overhead on the job cost sheet as they complete work on each job.

d) Because it is the most widely-used method.

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