Answer:
Results are below.
Explanation:
Giving the following formula:
Direct labor per filing cabinet= 18/60= 0.3
Direct labor rate $28 per hour
<u>The supervisor salary and depreciation will remain constant, we will not take them into account.</u>
70,000 units:
Direct labor hours= (0.3*70,000)= 21,000
Direct labor cost= 21,000*28= $588,000
80,000 units:
Direct labor hours= (0.3*80,000)= 24,000
Direct labor cost= 24,000*28= $672,000
90,000 units:
Direct labor hours= (0.3*90,000)= 27,000
Direct labor cost= 27,000*28= $756,000
