Sainte Claire Corporation has a highly automated production facility. Production volume and management judgment are the two factors that would likely have the most direct influence on the company's manufacturing overhead budget.

Question

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In a highly automated production facility, production volume directly affects the amount of overhead due to the correlation between production levels and the usage of machinery and utilities. Management judgment plays a significant role in planning and allocating resources, making decisions on capital expenditures, and setting efficiency and productivity targets, all of which influence the manufacturing overhead budget.

Sainte Claire Corporation Has a Highly Automated Production Facility