Table 13-6
Wooden Chair Factory
-Refer to Table 13-6. Each worker at the Wooden Chair Factory costs $12 per hour. The cost of each machine is $20 per day regardless of the number of chairs produced. What is the total daily cost of producing at a rate of 55 chairs per hour if the factory operates 8 hours per day?

Question

Table 13-6
Wooden Chair Factory 
-Refer to Table 13-6. Each worker at the Wooden Chair Factory costs $12 per hour. The cost of each machine is $20 per day regardless of the number of chairs produced. What is the total daily cost of producing at a rate of 55 chairs per hour if the factory operates 8 hours per day?

Quizplus · Accepted Answer

To find the total daily cost of producing chairs at the given rate, we need to calculate the cost of labor and the cost of machines for 8 hours of operation. 
Cost of labor = $12 per hour per worker x 55 chairs per hour x 8 hours = $5,280
Cost of machines = $20 per day 
Total daily cost = Cost of labor + Cost of machines = $5,280 + $20 = $5,300 
Therefore, the best choice is C, with a total daily cost of $520.

Table 13-6 Wooden Chair Factory