Table 12-6
Wooden Chair Factory

-Refer to Table 12-6.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.If the factory produces at a rate of 35 chairs per hour,what is the total labor cost per hour?

Question

Table 12-6
Wooden Chair Factory
 
-Refer to Table 12-6.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.If the factory produces at a rate of 35 chairs per hour,what is the total labor cost per hour?

Quizplus · Accepted Answer

Each worker costs $12 per hour, and the factory produces 35 chairs per hour. Therefore, the labor cost per chair is $12/35 or approximately $0.34 per chair. 
To find the total labor cost per hour, we simply multiply the labor cost per chair by the number of chairs produced per hour: 
$0.34 x 35 = $11.90 
Rounding up to the nearest dollar gives a total labor cost per hour of $12. 
Therefore, the correct answer is B, $48 (4 workers x $12 per hour).

Table 12-6 Wooden Chair Factory