Each of the five (5) workers in a factory is being paid $250 per day. For every unit produced in excess of 25 units in one day, a worker is paid $12. Fixed factory overhead per annum is $198,000 and there are approximately 330 working days in one year. Production data for July 6 and 7, 20C show the following number of units produced by each worker: July 6 = Cass - 25, Jen - 27, Owen - 24, Henry - 24, Miles - 28; July 7 = Cass - 26, Jen - 26, Owen - 28, Henry - 27, Miles - 26. What is the average direct labor cost per unit for the two-day period?

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
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Each of the five (5) workers in a factory is being paid $250 per day. For every unit produced in excess of 25 units in one day, a worker is paid $12. Fixed factory overhead per annum is $198,000 and there are approximately 330 working days in one year. Production data for July 6 and 7, 20C show the following number of units produced by each worker: July 6 = Cass - 25, Jen - 27, Owen - 24, Henry - 24, Miles - 28; July 7 = Cass - 26, Jen - 26, Owen - 28, Henry - 27, Miles - 26. What is the average direct labor cost per unit for the two-day period?

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