a packaging employee making $14 per hour can package 80 items during that hour. the direct material cost is…

a packaging employee making $14 per hour can package 80 items during that hour. the direct material cost is $0.65 per item. what is the total direct cost of 1 item?\n$?\nround to the nearest thousandth.

a packaging employee making $14 per hour can package 80 items during that hour. the direct material cost is $0.65 per item. what is the total direct cost of 1 item?\n$?\nround to the nearest thousandth.

Answer

Answer:

$0.825$

Explanation:

Step1: Calculate labor cost per item

The employee makes $14$ per hour and can package 80 items per hour. So the labor - cost per item is $\frac{14}{80}= 0.175$ dollars per item.

Step2: Calculate total direct cost per item

The direct - material cost is $0.65$ per item. The total direct cost per item is the sum of the labor cost per item and the direct - material cost per item. So it is $0.175 + 0.65=0.825$ dollars per item.