For what reason have companies recently chosen machine hours as an activity base when calculating a predetermined overhead rate?

Question

Quizplus · Accepted Answer

As companies are increasingly using automated manufacturing operations, the use of machine hours as an activity base for calculating a predetermined overhead rate is more appropriate. This is because the use of machines and technology is becoming more prevalent, and it is easier to track and verify machine hours than direct labour hours.

For What Reason Have Companies Recently Chosen Machine Hours as an Activity