A company has two inspectors,each earning a salary of $75,000.One inspector works exclusively on inspecting parts received from outside suppliers,while the other spends 30 percent of her time inspecting parts and 70 percent of her time inspecting final products.How much labor cost should be assigned to the activity,inspecting parts?
A)$100,000
B)$95,000
C)$75,000
D)$96,275
E)$97,500

Question

Quizplus · Accepted Answer

The first inspector's entire salary ($75,000) is assigned to inspecting parts. The second inspector spends 30% of her time on inspecting parts, so 30% of $75,000 is $22,500. Therefore, the total labor cost assigned to inspecting parts is $75,000 + $22,500 = $97,500.

A Company Has Two Inspectors,each Earning a Salary of $75,000