A Manual Process Takes 18 Minutes of Direct Labor Time

question 166

Multiple Choice

A manual process takes 18 minutes of direct labor time and 6 pounds of material to produce a product. Automating the process requires 12 minutes of machine time and 5 pounds of material. The cost per labor hour is $9, the cost per machine hour is $7, and the cost per pound of materials is $11. Find the nonvalue-added cost for the above situation.

• A) $2.40 per unit
• B) $9.00 per unit
• C) $12.30 per unit
• D) $1.70 per unit

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Definitions:

Crisis Management

The process by which an organization deals with major unexpected events that threaten to harm the organization, its stakeholders, or the general public.

Human Resource Conflict

Refers to disputes or disagreements between employees or between employees and management within an organization, often related to working conditions, policies, or interpersonal relationships.

Unplanned Change

Alterations in circumstances or conditions that occur without foresight or preparation, often requiring immediate adaptation.

Technological Change

The process through which new technologies are developed and introduced, leading to changes in productivity, efficiency, and societal impact.