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 35 chairs per hour, what is the total labor cost per hour?
A)$40
B)$48
C)$384
D)$424

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 35 chairs per hour, what is the total labor cost per hour?
A)$40 
B)$48 
C)$384 
D)$424

Quizplus · Accepted Answer

There are two components to the cost per hour: labor and machine cost. Since each worker costs $12 per hour, and there are 4 workers, the total labor cost per hour is:
$12/hour/worker * 4 workers = $48/hour
The cost of the machines is $20 per day, which is equivalent to:
$20/day / 24 hours/day = $0.83/hour
Since the factory produces 35 chairs per hour, the total cost per chair is:
($48/hour + $0.83/hour) / 35 chairs/hour = $1.46/chair
Therefore, the total labor cost per hour is $48.

Table 13-6 Wooden Chair Factory