Question

Meals are cooked in a process with two resources. The first resource has a capacity of 28 meals per hour. The capacity of the second resource is 24 meals per hour. The first resource has 9 workers and the second resource has 8 workers. Demand for this process is 31 meals per hour. Wages are $24 per hour. Instruction: Round your answer to four decimal places. What is the cost of direct labor (in $s)? _____________ per unit

Answer 1

Answer:

The cost of direct labor (in $s) is $7.85 per unit.

Step-by-step explanation:

First resource total wages per hour = Number of workers in first resource * Wages per hour = 9 * $24 = $216

Second resource total wages per hour = Number of workers in second resource * Wages per hour = 8 * $24 = $192

Total wages of the process per hour = First resource total wages + Second resource total wages = $216 + $192 = $408

Cost of direct labor per unit = Total wages of the process per hour / (Capacity of first resource + Capacity of second resource) = $408 / (28 + 24) = $7.85

Therefore, the cost of direct labor (in $s) is $7.85 per unit.