a packaging employee making $22 per hour can package 120 items during that hour. the direct material cost is…

a packaging employee making $22 per hour can package 120 items during that hour. the direct material cost is $0.70 per item. what is the total direct cost of 1 item? round to the nearest thousandth.

a packaging employee making $22 per hour can package 120 items during that hour. the direct material cost is $0.70 per item. what is the total direct cost of 1 item? round to the nearest thousandth.

Answer

Explanation:

Step1: Calculate the direct labor cost per item

The employee makes $22 per hour and packages 120 items per hour. So the direct labor cost per item is $\frac{22}{120}$. $$\frac{22}{120}\approx0.183$$

Step2: Calculate the total direct cost per item

The direct material cost is $0.70 per item. Add the direct labor cost per item to the direct material cost per item. $0.70 + 0.183=0.883$

Answer:

$0.883$