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? $? round 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? $? round to the nearest thousandth

Answer

Explanation:

Step1: Calculate labor cost per item

The labor cost per hour is $14 and 80 items are packaged per hour. So the labor - cost per item is $\frac{14}{80}$.

Step2: Calculate total direct cost per item

The direct - material cost per item is $0.65. The total direct cost per item $C$ is the sum of the labor cost per item and the direct - material cost per item. So $C=\frac{14}{80}+ 0.65$. $C = 0.175+0.65=0.825$

Answer:

$0.825$