COMPARISON OF BUSINESS WITH INTENSIVE LABOR VS. TECHNOLOGY

In recent years, technology and robotics have changed the structure (mix) of costs (direct materials, direct labor, and indirect manufacturing costs) in manufacturing companies.

Rolls Royce's cost structure includes a high direct labor cost and indirect costs are usually allocated with a single allocation rate. However, LEGO's cost structure includes a low direct labor cost, but requires greater attention to overhead costs.

1. What implications does the change in the structure of manufacturing costs caused by the use of technology and robotics have on the allocation (estimation) of indirect costs (overhead)?

2. Assuming that LEGO decides to use a single allocation rate for its indirect costs, which cost driver (cost driver) would be the most obvious to recommend? (You can only mention one) Explain.

3. Assuming that Rolls Royce decides to use a single allocation rate for its indirect costs, which cost driver (driver cost) would be the most obvious to recommend? (You can only mention one) Explain.

PLEASE, Can I have references link? That helps me to understand more the concept.