When substituting computerized equipment for direct labor,variable overhead may be associated more with

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Quizplus · Accepted Answer

When substituting computerized equipment for direct labor, variable overhead is more likely to be associated with machine usage rather than labor hours. This is because the cost of maintaining and operating the computerized equipment is typically more closely tied to how much the machines are used, rather than the number of labor hours required to operate them. Therefore, as machine usage increases, so does the variable overhead cost.

When Substituting Computerized Equipment for Direct Labor,variable Overhead May Be