As manufacturing moves toward automation, direct labor A. continues to be a major factor in the cost of products since automation is not capable of totally supplanting production workers. B. continues to be an appropriate base for computing overhead rates in all situations. C. is becoming less of a factor in the cost of products since machines now perform various functions that once were performed by direct labor workers. D. continues to be a major factor in the cost of products since supervisory salaries are increasing.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 11E
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As manufacturing moves toward automation, direct labor
A. continues to be a major factor in the cost of products since automation is not capable of totally supplanting production workers.
B. continues to be an appropriate base for computing overhead rates in all situations.
C. is becoming less of a factor in the cost of products since machines now perform various functions that once were performed by direct labor workers.
D. continues to be a major factor in the cost of products since supervisory salaries are increasing.

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