Motors are assembled in a process with two resources. The first resource has a capacity of 1.4 motors per hour. The capacity of the second resource is 1.2 motors per hour. The first resource has 3 workers and the second resource has 1 worker. Demand for this process is 0.84 motors per hour. Wages are $23 per hour.

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...
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Motors are assembled in a process with two resources. The first resource has a capacity of 1.4 motors per hour, The capacity of the
second resource is 1.2 motors per hour. The first resource has 3 workers and the second resource has 1 worker. Demand for this
process is 0.84 motors per hour. Wages are $23 per hour.
Instruction: Round your answer to two decimal places.
What is the cost of direct labor (in $)?
per unit
Transcribed Image Text:Motors are assembled in a process with two resources. The first resource has a capacity of 1.4 motors per hour, The capacity of the second resource is 1.2 motors per hour. The first resource has 3 workers and the second resource has 1 worker. Demand for this process is 0.84 motors per hour. Wages are $23 per hour. Instruction: Round your answer to two decimal places. What is the cost of direct labor (in $)? per unit
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