Jay Bole is in the process of developing a standard for the labour cost of one unit of Product X. According to the design manual, it takes a skilled worker 30 minutes to produce one unit of Product X when the workshop is operating at peak condition. However, Product X is quite complex, and even a skilled worker operating in high efficiency often needs another 5 minutes to adjust the tools, re-oil the machine, and rework some aspects of the product. A skilled worker is paid $30 per hour, while the company pays 20 per cent on-costs on top of this.
Jay decides to develop a practical standard. The standard labour cost for one unit of Product X is
A) $15.
B) $17.50.
C) $18.
D) $21.

Question

Quizplus · Accepted Answer

The Answer of Jay Bole is in the process of developing a standard for the labour cost of one unit of Product X. According to the design manual, it takes a skilled worker 30 minutes to produce one unit of Product X when the workshop is operating at peak condition. However, Product X is quite complex, and even a skilled worker operating in high efficiency often needs another 5 minutes to adjust the tools, re-oil the machine, and rework some aspects of the product. A skilled worker is paid $30 per hour, while the company pays 20 per cent on-costs on top of this.
Jay decides to develop a practical standard. The standard labour cost for one unit of Product X is
A) $15.
B) $17.50.
C) $18.
D) $21.

Jay Bole Is in the Process of Developing a Standard