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A company plans to add a new product that would affect its indirect labor costs in two ways. First, the production manager from an existing
A company plans to add a new product that would affect its indirect labor costs in two ways. First, the production manager from an existing product would serve as manager of the new product. Her current assistant manager would be promoted and assume her previous position. Second, the existing maintenance staff would provide facility and machine maintenance that would require hours of labor each month, but no increase in their total weekly hours worked. The companys production managers earn $ annually, assistant production managers are paid $ each year, and maintenance employees earn $ per hour. No additional hiring is planned. The annual relevant indirect labor costs for adding the new product would total
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