Quantro Enterprises has invested heavily in automated equipment over the past 10 years. In that time Quantro has installed materials handling systems and automated flexible manufacturing systems. All of these changes have allowed Quantro to reduce its labor costs by more than \(35 \%\) while increasing production by \(150 \%\). Quantro has been applying overhead to prod- In the chapter opening scenario, you learned that Erin and Seth's cost accounting ucts based on direct labor hours. What impact do the changes in Quantro's manufacturing process have on its application of its overhead? What impact on overhead assignment is created by economies of scale? Explain your answers.