a packaging employee making $14 per hour can package 400 items during that hour. the direct material cost is…

a packaging employee making $14 per hour can package 400 items during that hour. the direct material cost is $0.35 per item. what is the total direct cost of 1 item? round to the nearest thousandth.

a packaging employee making $14 per hour can package 400 items during that hour. the direct material cost is $0.35 per item. what is the total direct cost of 1 item? round to the nearest thousandth.

Answer

Explanation:

Step1: Calculate labor cost per item

Labor cost per hour is $14 and 400 items are packaged in an hour. So labor cost per item is $\frac{14}{400}= 0.035$.

Step2: Calculate total direct cost per item

Direct material cost per item is $0.35. Total direct cost per item is labor cost per item + material cost per item. So $0.035 + 0.35=0.385$.

Answer:

$0.385$