The current manual process takes 36 minutes of direct labour time and 12 kg of material to make a product. Automating the process would require 24 minutes of machine time and 10 kg of material. The cost per labour hour is $18, the cost per machine hour is $14, and the cost per kilogram of materials is $22. What is currently the non-value-added cost per unit?
A) $5.60 per unit
B) $10.80 per unit
C) $44.00 per unit
D) $49.20 per unit

Question

Quizplus · Accepted Answer

The Answer of The current manual process takes 36 minutes of direct labour time and 12 kg of material to make a product. Automating the process would require 24 minutes of machine time and 10 kg of material. The cost per labour hour is $18, the cost per machine hour is $14, and the cost per kilogram of materials is $22. What is currently the non-value-added cost per unit?
A) $5.60 per unit
B) $10.80 per unit
C) $44.00 per unit
D) $49.20 per unit

The Current Manual Process Takes 36 Minutes of Direct Labour