Refer to the problem chart for the automobile oil change in solved problem 2. Calculate the annual labor cost if:
The mechanic earns $40 per hour (including variable fringe benefits).
The process is performed twice per hour (on average)
The shop is open 300 days a year, 10 hours a day
a. What is the total labor cost associated with the process?
b. If steps 7, 10, 12 and 15 were eliminated, estimate the annual labor saving associated with implementing this new process.