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Explain why manufacturing overhead increases as a firm starts using more automated machinery and why this makes it more difficult to determine the real cost

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Explain why manufacturing overhead increases as a firm starts using more automated machinery and why this makes it more difficult to determine the real cost of a product.

The production of one 5-gallon can of house paint requires 15 minutes of direct labor. Other production data follow: Estimated hourly wage $15.00 Downtime (per 8-hour shift): 10% Burden (employer taxes) Setup 5 minutes 25% Cleanup 20 minutes Fringe benefits (vacation, etc. Breaks 30 minutes 55 minutes = 11.5% of a 480 minute shift Required: Calculate the standard cost card line for direct labor. Carry answers out to four decimal places. Show all computations using the unit labeling method used in the lectures. Present the SC card line in good form (no SC card title needed). Your answer should be handwritten and scanned to pdf and uploaded. PDF only

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