a packaging employee making $16 per hour can package 120 items during that hour. the direct material cost is…

a packaging employee making $16 per hour can package 120 items during that hour. the direct material cost is $0.85 per item. what is the total direct cost of 1 item? $? round to the nearest thousandth.

a packaging employee making $16 per hour can package 120 items during that hour. the direct material cost is $0.85 per item. what is the total direct cost of 1 item? $? round to the nearest thousandth.

Answer

Answer:

$1.017$

Explanation:

Step1: Calculate labor cost per item

The employee makes $16$ per hour and packages 120 items per hour. So the labor - cost per item is $\frac{16}{120}\approx0.133$.

Step2: Calculate total direct cost per item

The direct - material cost per item is $0.85$. 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 $0.133 + 0.85=1.017$.