Mineral Extraction Inc. is a mining company in Texas. Management is preparing the budgets for the upcoming year and is calculating the standard labor cost per load of ore. If a machine used in the mining process were running at 100% capacity, it could extract 3 loads per day at a rate of 3.5 machine hours/load. However, the labor union contract indicates that machine operators cannot be required to work more than eight hours per day and the company currently operates one shift per day. Each day, the equipment must be set up and taken down, requiring the help of all machine operators. The set-up and take-down process for the equipment requires a half hour in the morning and a half hour at the end of the day. Assume that the set-up and take-down time is incorporated into the overall time workers can be on the job each day and that set up / take down time is incorporated into the standard labor cost per load. Four workers are required to operate the machinery at a given time. The standard wage rate is $22 per direct labor hour.
What is the standard direct labor cost per load of ore?

Question

Mineral Extraction Inc. is a mining company in Texas. Management is preparing the budgets for the upcoming year and is calculating the standard labor cost per load of ore. If a machine used in the mining process were running at 100% capacity, it could extract 3 loads per day at a rate of 3.5 machine hours/load. However, the labor union contract indicates that machine operators cannot be required to work more than eight hours per day and the company currently operates one shift per day. Each day, the equipment must be set up and taken down, requiring the help of all machine operators. The set-up and take-down process for the equipment requires a half hour in the morning and a half hour at the end of the day. Assume that the set-up and take-down time is incorporated into the overall time workers can be on the job each day and that set up / take down time is incorporated into the standard labor cost per load. Four workers are required to operate the machinery at a given time. The standard wage rate is $22 per direct labor hour. 
What is the standard direct labor cost per load of ore?

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The Answer of Mineral Extraction Inc. is a mining company in Texas. Management is preparing the budgets for the upcoming year and is calculating the standard labor cost per load of ore. If a machine used in the mining process were running at 100% capacity, it could extract 3 loads per day at a rate of 3.5 machine hours/load. However, the labor union contract indicates that machine operators cannot be required to work more than eight hours per day and the company currently operates one shift per day. Each day, the equipment must be set up and taken down, requiring the help of all machine operators. The set-up and take-down process for the equipment requires a half hour in the morning and a half hour at the end of the day. Assume that the set-up and take-down time is incorporated into the overall time workers can be on the job each day and that set up / take down time is incorporated into the standard labor cost per load. Four workers are required to operate the machinery at a given time. The standard wage rate is $22 per direct labor hour. 
What is the standard direct labor cost per load of ore?