a packaging employee making $16 per hour can package 320 items during that hour. the direct material cost is…

a packaging employee making $16 per hour can package 320 items during that hour. the direct material cost is $0.40 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 320 items during that hour. the direct material cost is $0.40 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 employee makes $16 per hour and packages 320 items per hour. So the labor - cost per item is $\frac{16}{320}= 0.05$.

Step2: Calculate total direct cost per item

The direct - material cost per item is $0.40. 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 $0.05 + 0.40=0.450$.

Answer:

$0.450$