The Current Manual Process Takes 36 Minutes of Direct Labour

question 12

Multiple Choice

The current manual process takes 36 minutes of direct labour time and 12 kg of material to make a product. Automating the process would require 24 minutes of machine time and 10 kg of material. The cost per labour hour is $18, the cost per machine hour is $14, and the cost per kilogram of materials is $22. What is currently the non-value-added cost per unit?

• A) $5.60 per unit
• B) $10.80 per unit
• C) $44.00 per unit
• D) $49.20 per unit

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Definitions:

Minority Cultures

Cultural groups that exist within a larger, dominant culture but maintain distinct languages, traditions, or practices.

Multicultural Organizations

Organizations characterized by a diverse and inclusive workforce consisting of individuals from various cultural, ethnic, and racial backgrounds, which fosters innovation and global understanding.

Structural Integration

A concept in organizational management that refers to aligning the various elements of an organization (systems, processes, departments, and people) to work together efficiently towards achieving the organization's goals.

Intergroup Conflict

Describes the friction or opposition that arises between different groups or teams, often caused by competition, miscommunication, or conflicting goals.