The new artisanal greenhouse would require 700 empty wine bottles be embedded in a frame made of clay and straw.The builder,a man with too much time on his hands,had determined that each time a bottle was added to the structure it would take 30 minutes of labor at $7.50 per hour in the blazing sun.An activity-based costing of the entire artisanal greenhouse revealed that the total labor cost would be:
A)$2,525.
B)$2,850.
C)$2,625.
D)$2,450.

Question

Quizplus · Accepted Answer

The labor cost per bottle is $3.75 (since $7.50 per hour for 30 minutes of labor equals half of $7.50). For 700 bottles, the total labor cost is 700 * $3.75 = $2,625.

The New Artisanal Greenhouse Would Require 700 Empty Wine Bottles