Increasing automation in a manufacturing facility will likely:
A) Increase the number of direct labor hours and decrease overhead costs.
B) Decrease the number of direct labor hours and increase overhead costs.
C) Decrease the number of direct labor hours and decrease overhead costs.
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

Increasing automation in a manufacturing facility means that more tasks that were previously done by direct labor will now be done by machines, resulting in a decrease in the number of direct labor hours needed. However, the initial investment in the automation machinery will increase overhead costs. Therefore, option B is the correct answer.

Increasing Automation in a Manufacturing Facility Will Likely