A Manual Process Takes 36 Minutes of Direct Labour Time

question 128

Multiple Choice

A manual process takes 36 minutes of direct labour time and 12 kg of material to make a product.Automating the process requires 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 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:

MBO Cycle

Management by Objectives (MBO) Cycle refers to the systematic process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization.

Periodic Review

An assessment conducted at regular intervals to evaluate performance, compliance, or progress towards objectives.

Face-To-Face Meetings

Direct interactions between two or more individuals present in the same location, typically for discussion or collaboration.

Labor-Management

The interaction, negotiation, and relationship between the workforce (labor) and the management team of an organization, often focusing on collective bargaining, workplace conditions, and labor rights.