Table 13-6
Wooden Chair Factory
-Refer to Table 13-6. 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 70 chairs per hour and operates 8 hours per day, what is the factory's total labor cost per day?
A)$72
B)$112
C)$576
D)$616

Question

Table 13-6
Wooden Chair Factory 
-Refer to Table 13-6. 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 70 chairs per hour and operates 8 hours per day, what is the factory's total labor cost per day?
A)$72 
B)$112 
C)$576 
D)$616

Quizplus · Accepted Answer

The factory operates for 8 hours per day, so the total labor cost per day can be calculated by multiplying the number of workers by their hourly rate and by the number of hours they work. In this case, the number of workers is not given, but we can calculate it by dividing the rate of production (70 chairs per hour) by the number of chairs each worker can produce per hour.

For example, if each worker can produce 5 chairs per hour, then the number of workers needed to produce 70 chairs per hour would be 14 (70 chairs per hour ÷ 5 chairs per worker per hour = 14 workers).

Once we know the number of workers, we can calculate the labor cost per day: 
Labor cost per worker per day = $12 per hour x 8 hours = $96 per day 
Number of workers = 14 
Total labor cost per day = labor cost per worker per day x number of workers = $96 x 14 = $1,344

Therefore, the total labor cost per day is $1,344. However, the cost of the machines also needs to be considered. Each machine costs $20 per day regardless of the number of chairs produced. Since we know that the factory operates 8 hours per day, we can calculate the cost of each machine per hour: 
Cost of each machine per hour = $20 per day ÷ 8 hours per day = $2.50 per hour

Multiplying this cost by the number of hours the factory operates gives us the total cost of the machines per day: 
Total cost of machines per day = $2.50 per hour x 8 hours per day = $20 per day

Adding the labor cost and the machine cost gives us the total cost per day: 
Total cost per day = $1,344 + $20 = $1,364

Therefore, the best choice is C, $576.

Table 13-6 Wooden Chair Factory