Person K is the vice-president of operations at Company J, which received a request for quote of supplying 400 units per week. Employee must be permitted to perform the task for 17 times. The actual times observed were given below: Number Actual time (minutes) 1 2.05 2 1.92 3 2.01 4 1.89 5 1.77 6 1.8 7 1.86 8 1.83 9 1.93 10 1.96 11 1.95 12 2.05 13 1.79 14 1.82 15 1.85 16 1.85 17 1.99 Performance rating is 115%, fatigue allowance is given as 8%, personal allowance is 6%, and delay allowance is 2%. Workday hour is 7.5 hours and the operators would be paid $12.50 per hour for 8 hours. To determine: Thecost per unit for the task in direct labor cost.

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Chapter 10, Problem 4CS

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Case summary:

Person K is the vice-president of operations at Company J, which received a request for quote of supplying 400 units per week. Employee must be permitted to perform the task for 17 times. The actual times observed were given below:

Number Actual time (minutes)
1 2.05
2 1.92
3 2.01
4 1.89
5 1.77
6 1.8
7 1.86
8 1.83
9 1.93
10 1.96
11 1.95
12 2.05
13 1.79
14 1.82
15 1.85
16 1.85
17 1.99

Performance rating is 115%, fatigue allowance is given as 8%, personal allowance is 6%, and delay allowance is 2%. Workday hour is 7.5 hours and the operators would be paid $12.50 per hour for 8 hours.

To determine: Thecost per unit for the task in direct labor cost.

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