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Discuss what has happened in recent industrial history to reduce the usefulness of direct labor as the primary basis for allocating overhead to products?
Wiki User
∙ 11y ago
Advances in computerized systems, technological innovation, global competition, and automation have changed the manufacturing environment. The amount of direct labor used in many industries has greatly decreased, and total overhead costs resulting from depreciation on expensive equipment and machinery, utilities, repairs, and maintenance have significantly increased. When there is not a correlation between direct labor and overhead, it is inappropriate to use predetermined overhead rates based on direct labor.
Wiki User
∙ 11y ago
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Why factory overhead cost is applied on production?
Factory overheads are incurred only and only due to production of the goods. That is why the factory overhead cost is applied to production.
The cost of overhead minus selling price?
The cost of overhead minus the selling price is a loss. The selling price is typically large enough to include materials and profit.
Why do you think service-producing industries are growing faster than goods-producing industries?
Service producing industries are growing faster because they have a lower overhead. With a lower overhead, they can reinvest the excess money.
What is social overhead capital?
Capital spent on social infrastructure, such as schools, universities, hospitals, libraries.
Factors might affect cost of product?
Labor, resources, distribution costs, overhead, and taxes.
What are the two bases for allocating the factory overhead expenses?
Direct and indirect
Why would planes flying overhead freeze your cable modem?
That actually just happened to me! It was Wierd...sorry I don't have an answer for you
What is Fast packet switching?
fast packet switching: A packet switching technique that increases the throughput by eliminating overhead. Note 1: Overhead reduction is accomplished by allocating flow control and error correction functions to either the user applications or the network nodes that interface with the user. Note 2: Cell relay and frame relay are two implementations of fast packet switching.
How do you calculate Overhead absorption rate apportionment?
Overhead rate : Overhead rate = total overhead cost / direct labor OR Overhead rate = Total overhead cost / machine hours.
What word is the adverb in the sentence several flew overhead?
The adverb is overhead.
Is is overhead an adverb?
Overhead can be an adverb. But it can also be an adjective or noun. Planes flying "overhead" would be an adverb. Overhead wires would be an adjective. The overhead of a business would be a noun.
Is overhead an adverb?
Overhead can be an adverb. But it can also be an adjective or noun. Planes flying "overhead" would be an adverb. Overhead wires would be an adjective. The overhead of a business would be a noun.
What is combined overhead variance?
Combined overhead variance = fixed overhead variance + variable overhead varianceFixed Overhead :which remains fixed and donot change upto certain level of productionVariable Overhead: which keep changing with the change in production units.
How do you determine the overhead rate when applying overhead costs?
Using direct labor hours: Overhead rate = Total Overhead Expenses /Direct labor hours Using Machine hours: Overhead rate = Total Overhead Expenses /Machine hours
What are the ceilings on a ship called?
The "overhead"
What is the OHV Engine?
the lifters are on the overhead of the engine the lifters are on the overhead of the engine the lifters are on the overhead of the engine
What the meaning of blanket overhead rate?
Blanket overhead rate is the computation of a single overhead rate for one whole factory. Overhead rate is the percentage you get when comparing total overhead expenses to total expenses.
