Based on past experience, a production process requires 15 hours of direct labour and 2 assemblers for every $450 of raw materials. If the company has budgeted for $33,750 worth of raw materials, how many hours of direct labour and how many assemblers will the company require?

Question

Quizplus · Accepted Answer

For every $450 of raw materials, the process requires 15 hours of direct labour and 2 assemblers. With a budget of $33,750 for raw materials, this is 75 times the base amount ($33,750 / $450 = 75). Therefore, the company will require 75 times the base amount of labour and assemblers: 15 hours * 75 = 1,125 hours of direct labour and 2 assemblers * 75 = 150 assemblers.

Based on Past Experience, a Production Process Requires 15 Hours