Discuss what happens to overhead rates that are based on direct labor when automated equipment replaces direct labor. Would manufacturing overhead increase or decrease

Manufacturing overhead rates based on direct labor will increase and the total overhead itself will increase as a result of the increased use of equipment instead of direct labor.

Explanation:

When overhead rates are based on direct labor and automated equipment replaces direct labor, the number of direct labor hours will decrease.  This will cause an increase in the predetermined overhead rates since fewer direct labor hours will now divide the same or even an increased level of overhead.  Even the overhead costs will increase from the replacement of direct labor with equipment.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know