Table 13-3

-Refer to Table 13-3.Each worker at Gallo's cork factory costs $12 per hour.The cost of each machine is $20 per day regardless of the number of corks produced.What is the total daily cost of producing at a rate of 55 units per hour if Gallo's operates 8 hours per day?

Question

Table 13-3
 
-Refer to Table 13-3.Each worker at Gallo's cork factory costs $12 per hour.The cost of each machine is $20 per day regardless of the number of corks produced.What is the total daily cost of producing at a rate of 55 units per hour if Gallo's operates 8 hours per day?

Quizplus · Accepted Answer

First, we can calculate the total cost of workers per day:

Total cost of workers = $12 per worker per hour x 8 hours per day x 7 workers = $672

Next, we can calculate the cost of machines per day:

Cost of machines = $20 per machine per day x 1 machine = $20

Then, we can calculate the total cost of producing 55 units per hour:

Total cost of producing 55 units per hour = $672 + $20 = $692

Finally, to find the total daily cost of producing at a rate of 55 units per hour for 8 hours per day, we can multiply the total cost of producing 55 units per hour by the number of hours per day:

Total daily cost = $692 x 8 = $5,536

Therefore, the best choice is C, $520.

Table 13-3 -Refer to Table 13-3.Each Worker at Gallo's Cork Factory Costs