The effect on the costs of direct labor.

Question

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Answer 1

Question

Chapter 4, Problem 1CQ

Summary Introduction

To explain: The effect on the costs of direct labor.

Expert Solution & Answer

Explanation of Solution

Correct option: (a)

Correct answer:

Costs of direct labor would be 50 percent lower.

Justification:

It is given that the process is replicated in another country in which the wages are 50% lower compared to the existing country. It is also mentioned that the staffing and processing times are identical to the existing country. Therefore, there will not be any need for the additional time required. Naturally, the direct labor costs will be 50% lower.

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Students have asked these similar questions

Consider a process consisting of three resources. Assume there exists unlimited demandfor the product.• Resource 1 has a processing time of 6 minutes per unit.• Resource 2 has a processing time of 3 minutes per unit.• Resource 3 has a processing time of 5 minutes per unit.All three resources are staffed by one worker.a. Draw a process flow diagram of this process.b. What is the capacity of resource 2?c. What is the bottleneck in the process?d. What is the utilization of resource 2?e. How long does it take the process to produce 200 units starting with an empty system,assuming this is a worker-paced process?

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Answer 2

Question

Chapter 4, Problem 1CQ

Summary Introduction

To explain: The effect on the costs of direct labor.

Expert Solution & Answer

Explanation of Solution

Correct option: (a)

Correct answer:

Costs of direct labor would be 50 percent lower.

Justification:

It is given that the process is replicated in another country in which the wages are 50% lower compared to the existing country. It is also mentioned that the staffing and processing times are identical to the existing country. Therefore, there will not be any need for the additional time required. Naturally, the direct labor costs will be 50% lower.

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Answer 3

Question

Chapter 4, Problem 1CQ

Summary Introduction

To explain: The effect on the costs of direct labor.

Expert Solution & Answer

Explanation of Solution

Correct option: (a)

Correct answer:

Costs of direct labor would be 50 percent lower.

Justification:

It is given that the process is replicated in another country in which the wages are 50% lower compared to the existing country. It is also mentioned that the staffing and processing times are identical to the existing country. Therefore, there will not be any need for the additional time required. Naturally, the direct labor costs will be 50% lower.

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Answer 4

Question

Chapter 4, Problem 1CQ

Summary Introduction

To explain: The effect on the costs of direct labor.

Expert Solution & Answer

Explanation of Solution

Correct option: (a)

Correct answer:

Costs of direct labor would be 50 percent lower.

Justification:

It is given that the process is replicated in another country in which the wages are 50% lower compared to the existing country. It is also mentioned that the staffing and processing times are identical to the existing country. Therefore, there will not be any need for the additional time required. Naturally, the direct labor costs will be 50% lower.

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Answer 5

Chapter 4, Problem 1CQ

Summary Introduction

To explain: The effect on the costs of direct labor.

Expert Solution & Answer

Explanation of Solution

Correct option: (a)

Correct answer:

Costs of direct labor would be 50 percent lower.

Justification:

It is given that the process is replicated in another country in which the wages are 50% lower compared to the existing country. It is also mentioned that the staffing and processing times are identical to the existing country. Therefore, there will not be any need for the additional time required. Naturally, the direct labor costs will be 50% lower.

Answer 6

Chapter 4, Problem 1CQ

Summary Introduction

To explain: The effect on the costs of direct labor.

Expert Solution & Answer

Explanation of Solution

Correct option: (a)

Correct answer:

Costs of direct labor would be 50 percent lower.

Justification:

It is given that the process is replicated in another country in which the wages are 50% lower compared to the existing country. It is also mentioned that the staffing and processing times are identical to the existing country. Therefore, there will not be any need for the additional time required. Naturally, the direct labor costs will be 50% lower.

Answer 7

Chapter 4, Problem 1CQ

Summary Introduction

To explain: The effect on the costs of direct labor.

Answer 8

Expert Solution & Answer

Explanation of Solution

Correct option: (a)

Correct answer:

Costs of direct labor would be 50 percent lower.

Justification:

It is given that the process is replicated in another country in which the wages are 50% lower compared to the existing country. It is also mentioned that the staffing and processing times are identical to the existing country. Therefore, there will not be any need for the additional time required. Naturally, the direct labor costs will be 50% lower.