Simple answer is efficiency.
More output can be produced if labour specialised and focused on a particular activity.
One due to the time saved from switching tasks and secondly getting better (and faster) at what they do.
This leads to two outcomes.
1. Lower average costs of production
2. Greater output.
A measure such as direct labor-hours or machine hours used to assign overhead costs to products and services is called a cost driver or an allocation base.
An entity allocates its overhead costs on the basis of an allocation base. An allocation basis is a measurement, such as the amount of square footage occupied, kilowatt hours consumed, or machine hours used.
Cost accounting assigns overhead expenses using an allocation base. An allocation base can be a quantity, such as the amount of machine hours used, kWh spent, or occupied square footage.
Learn more about allocation base here
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The correct answer is agents and brokers. Agents and brokers are considered to be a non-manufacturing traders by which they sell, buy, or even facilitate the traded products of which the goods that they sell are not theirs or they didn't actually owned it.
Answer:
- Punch Press - $12,502
- Lathe - $3,908.52
- Welder - $2,344.36
Explanation:
Cost will be allocated based on proportion of total Appraiser's estimate of fair value.
Total Appraisal Estimate = 16,000 + 5000 + 3,050
= $24,050
Total Purchase Price = Purchase price + Installation cost
=17,000 + 1,800
=$18,800
Punch Press
Punch Press proportion = 
= 66.5%
Punch Press Cost = 66.5% * 18,800
= $12,502
Lathe
Lathe proportion = 
= 20.79%
Punch Press Cost = 20.79% * 18,800
= $3,908.52
Welder
Welder proportion = 
= 12.47%
Punch Press Cost = 12.47% * 18,800
= $2,344.36
Note; There are multiple variants of this question so be sure to check the figures to ensure it is the right one.
