Ekpro Products manufactures containment chambers for environmentally friendly incinerators. Each chamber is built to customer specifications. Most of the direct labor time is spent on welding activities. Following is the job cost sheet for an incinerator manufactured for Benzate Corporation:

(b) Ekpro is considering installation of a robotic machine that will do all welding operations. How might this decision impact the total overhead and the application method?

Ekpro Job Cost Sheet 0 Benzate Applied Overhead Direct Labor Direct Material Total Cost Hours Rate Total Qty Total Qty Rate Total er May 8, 20X7 Rod Burner Sandy Sharp Steel May 9, 20X7 Sandy Sharp Applied Overhead S 225 $ 12 $ 800 9 $25 S 225 1 $12 S 12 10 80 $ 800 S 24 ?? S 360 360 $ 360 $1,421 2 $12 S 24 12 $ 261 $ 800