Setup Time for a Product Is 12 Hours

question 83

Multiple Choice

Setup time for a product is 12 hours. A firm that uses JIT and produces the same product has reduced setup time to 1 hour. Setup labour is £6 per hour. The nonvalue-added costs are

• A) £72.
• B) £66.
• C) £12.
• D) £6.

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Definitions:

Hourly Wage

The rate of payment to a worker for each hour worked.

Power Plant Engineer

A professional engineer who is involved in the design, construction, maintenance, and operation of power plants and equipment for generating electricity.

Statutory Holidays

Public holidays established by law, during which employees are entitled to have the day off with pay.

In-Store Products

Items available for purchase within a physical retail location.