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 $0.40 per item. what is the total direct cost of 1 item?\n$?\nround to the nearest thousandth.

a packaging employee making $16 per hour can package 320 items during that hour. the direct material cost is $0.40 per item. what is the total direct cost of 1 item?\n$?\nround to the nearest thousandth.

Answer

Answer:

$0.450$

Explanation:

Step1: Calculate labor cost per item

$16\div320 = 0.05$

Step2: Calculate total direct cost per item

$0.05 + 0.40=0.45$ (rounded to nearest thousandth is $0.450$)