Uno Directions manager has come to you with some queries you about the service costs and how they are allocated on an interim budget for a subsidiary Dolled Up. Dolled Up has categorised the production department into Manufacturing and Packaging. These are supported by the Maintenance and Cleaning departments. Dolled Up allocates maintenance costs based on the number of repair jobs and services whereas cleaning costs are allocated based on the number of spills and sweeps that have to be done to keep the workplace safe.

You are provided with the following information:

Manufacturing	$595,000
Packaging	$185,000
Maintenance	$27,000
Cleaning	$67,000

Department	No. of Maintenance (repairs and services)	No. of Cleaning (spills and sweeps)
Manufacturing	36	68
Packaging	54	52
Maintenance	13	15
Cleaning	25	10

Required:

d) Discuss the implications of your results and why such an analysis is important

e) Advancements in technology have led to many manufacturing companies utilising more robotic machines in the production process. This has resulted in less reliance on direct labour. Given these changes what is the implication for managing overheads?