B.) An industrial engineer has designed two alternative methods for accomplishin production job. Both methods involve the acquisition of the same working place other capital equipment to be used for this job only. Method A calls for a crew consisting of three men each costing P30.00 per hour. T method will result in the production of 10 units per hour of which two will be reject. Method B calls for a crew of two men each costing P35.00 per hour and should resu the production of eight units per hour of which one will be reject. The cost of the direct material lost in each reject is P20.00. If a certain total number units is to be produced, find which method is economical?
B.) An industrial engineer has designed two alternative methods for accomplishin production job. Both methods involve the acquisition of the same working place other capital equipment to be used for this job only. Method A calls for a crew consisting of three men each costing P30.00 per hour. T method will result in the production of 10 units per hour of which two will be reject. Method B calls for a crew of two men each costing P35.00 per hour and should resu the production of eight units per hour of which one will be reject. The cost of the direct material lost in each reject is P20.00. If a certain total number units is to be produced, find which method is economical?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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