a packaging employee making $18 per hour can package 90 items during that hour. the direct material cost is…

a packaging employee making $18 per hour can package 90 items during that hour. the direct material cost is $1.20 per item. what is the total direct cost of 1 item? $? round to the nearest thousandth.

a packaging employee making $18 per hour can package 90 items during that hour. the direct material cost is $1.20 per item. what is the total direct cost of 1 item? $? round to the nearest thousandth.

Answer

Answer:

$1.400$

Explanation:

Step1: Calculate labor cost per item

$18\div90 = 0.2$

Step2: Calculate total direct - cost per item

$0.2+1.2=1.4$ Since we need to round to the nearest thousandth, the answer is $1.400$.