Respuesta :
The answer is overhead increases.
Direct Cost Vs. Indirect Cost:
Direct cost may be a cost that can be distinguished easily to one cost object. Indirect cost could be a cost that's shared by more than one cost question. An example of coordinate cost is coordinate materials and an case of indirect cost is manufacturing overhead.
What happened to overhead rates ?
- When an automated hardware replaces coordinate labor it infers that less workers or human exertion will be required to total the errand and within the by and large generation handle.
- Subsequently, this will decrease the coordinate labor taken a toll whereas increasing the Predetermined overheads within the frame of increment in power to run the gear , set up costs, upkeep and running the machine.
- The predetermined overhead taken a toll will increment in the event that the overhead rate is based on coordinate labor.
- The reason being when the denominator decreases i.e. no of coordinate labor hours in determing the overhead rate whereas the numerator i.e. overheads increment due to mechanization , the overhead rate increments.
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