Motors are assembled in a process with two resources. The first resource has a capacity of 1.4 motors per hour. The capacity of the second resource is 1.2 motors per hour. The first resource has 3 workers and the second resource has 1 worker. Demand for this process is 0.84 motors per hour. Wages are $23 per hour. What is the cost of direct labor (in $)? Note: Round your answer to 2 decimal places. Cost of direct labor $ 68.45 per unit

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter5: Process Costing
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Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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Additional Algo 4-4 Cost of Direct Labor
Motors are assembled in a process with two resources. The first resource has a capacity of 1.4 motors per hour. The capacity of the
second resource is 1.2 motors per hour. The first resource has 3 workers and the second resource has 1 worker. Demand for this
process is 0.84 motors per hour. Wages are $23 per hour.
What is the cost of direct labor (in $)?
Note: Round your answer to 2 decimal places.
Cost of direct labor
$
68.45 per unit
Transcribed Image Text:Additional Algo 4-4 Cost of Direct Labor Motors are assembled in a process with two resources. The first resource has a capacity of 1.4 motors per hour. The capacity of the second resource is 1.2 motors per hour. The first resource has 3 workers and the second resource has 1 worker. Demand for this process is 0.84 motors per hour. Wages are $23 per hour. What is the cost of direct labor (in $)? Note: Round your answer to 2 decimal places. Cost of direct labor $ 68.45 per unit
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