Mini Case - Glover \& Lamb Management at Glover \& Lamb is concerned about controlling factory labor-related costs and is looking at adopting ABC. The following summary is the result of an analysis of the major categories of labor costs for the year: Following are some of the potential cost drivers identified by the company for labor-related costs, along with the current year volume levels: a. For each cost pool, determine the cost per unit of the activity driver using the activity driver that you believe has the closest relationship to the cost pool. b. Based on your judgement and calculations in a), which driver should receive the most attention from company managers in their efforts to control labor-related costs? How much of the total labor-related cost is attributed to this activity driver? In order to reduce costs and manufacturing cycle time, Glover \& Lamb has decided to install highly automated equipment which would displace essentially 60% of the workforce. Glover \& Lamb is a major employer in its geographic region. c. How would you advise Glover \& Lamb to explain to its workers that their job is a non-valueadded activity? d. How would you advise Glover \& Lamb to reduce its costs in a way that would not create economic havoc in its local area