Harris Inc.

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Harris, Inc.

Harris, Inc., has just completed two jobs: Job A and Job B, which were similar in terms of complexity, production processes, and units manufactured. Job A was manufactured by Joe who earns Rs. 14 per hour, whereas Job B was completed by Susan who earns Rs. 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? Briefly explain.

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