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 $0.85 per item. what is the total direct cost of 1 item?\n$?\nround to the nearest thousandth.

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

Answer

Answer:

$1.017$

Explanation:

Step1: Calculate labor cost per item

The labor - cost per hour is $$16$ and the number of items packaged per hour is $120$. So the labor cost per item $l=\frac{16}{120}\approx0.133$.

Step2: Calculate total direct cost per item

The direct - material cost per item $m = 0.85$. The total direct cost per item $C=l + m$. Substitute $l\approx0.133$ and $m = 0.85$ into the formula, we get $C=0.133+0.85 = 0.983+0.034=1.017$.