Final answer:
The basis used by a business to charge overhead over the last five years cannot be determined without context, but common methods include direct labor hours, total usage of drivers, number of checks, and number of set-ups. Trends towards automation might suggest a shift from labor-based to machine-based or activity-based overhead allocation.
Step-by-step explanation:
The basis used by a business to charge overhead can take various forms, depending on the company's operating practices and the nature of its industry. Over the last five years, without the specific context provided in the question, we cannot definitively describe the basis they used. However, generally, businesses use cost drivers like direct labor hours, total usage of drivers, number of checks, or number of set-ups.
A basis such as direct labor hours involves assigning overhead costs based on the amount of labor required to produce a product or service. This method can be useful if labor is a significant portion of the total production cost. On the other hand, if the company has shifted towards automated processes, using a basis such as the number of machine set-ups or the usage of certain machinery (total usage of drivers) may be more relevant and accurate.
Without clear insights into the company's financial allocation methods and production processes over the past five years, we cannot pinpoint which option they chose. However, it's worth noting that a trend towards automation and technology integration in business operations could suggest a shift from labor-based overhead allocation to machine or activity-based costing methods.