a packaging employee making $20 per hour can package 160 items during that hour. the direct material cost is…

a packaging employee making $20 per hour can package 160 items during that hour. the direct material cost is $0.50 per item. what is the total direct cost of 1 item?\n$?\nround to the nearest thousandth.

a packaging employee making $20 per hour can package 160 items during that hour. the direct material cost is $0.50 per item. what is the total direct cost of 1 item?\n$?\nround to the nearest thousandth.

Answer

Explanation:

Step1: Calculate labor cost per item

The employee makes $20 per hour and packages 160 items per hour. So the labor - cost per item is $\frac{20}{160}= 0.125$.

Step2: Calculate total direct cost per item

The direct - material cost per item is $0.50. 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 $0.125 + 0.50=0.625$.

Answer:

$0.625$