What is the engineer’s concern about the overhead rate going “up and up”?

What is the engineer’s concern about the overhead rate going “up and up”?.Your paper will automatically be submitted to Turnitin in the assignment dropbox. Originality reports will be returned to the faculty and student. Multiple submissions are allowed. For full credit, make sure that your Similarity Index does not exceed 25% for undergraduate work.

Fabricator Inc., a specialized equipment manufacturer, uses a job order costing system. The overhead is allocated to jobs on the basis of direct labor hours. The overhead rate is now $ 3,000 per direct labor hour. The design engineer thinks that this is illogical. The design engineer has stated the following: Our accounting system doesn’t make any sense to me. It tells me that every labor hour carries an additional burden of $3,000. This means that while direct labor makes up only 5% of our total product cost, it drives all our costs. In addition, these rates give my design engineers incentives to “design out” direct labor by using machine

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