MANUFACTORINGInvestigate%A packaging employee making $18per hour can package 90 itemsduring that hour. The direct materialcost is $1.20 per item. What is thetotal direct cost of 1 item?A. $1.20C. $1.40o'F5^F6&F7SF8B. $0.20aD. $1.00DELLF9I=ACCprtscF10homeF11endF12

Solution:- Total direct cost means the cost incurred on the direct factors of production i.e. direct material cost, labor cost and direct overhead cost.Here, direct material cost per item = $1.20 Total wages for 90 items = $18 So, wages for 1 item = $18 / 90 = $0.20 Therefore, total direct cost of 1 item = Direct material cost per item + Wages for 1 item So, total direct cost of 1 item = $1.20 + $0.20 So, total direct cost of 1 item = $1.40 Hence, option C. is correct i.e. $1.40

Answered: A packaging employee making $18 per…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A packaging employee making $18 per hour can package 90 items during that hour. The direct material cost is $1.20 per item. What is the total direct cost of 1 item? A. $1.20 C. $1.40 B. $0.20 D. $1.00