Ashley Technology Inc. manufactures a scrambling device for cellular telephones. The device's main component is a delicate part, CT140. CT140 is easily damaged and requires careful handling. Once damaged, it must be discarded. The firm hires only skilled laborers to manufacture and install CT140; however, some are still damaged. Robotic instruments process all other parts. Ashley's operating data for 2 years are as follows:

2019 2019 Units manufactured 1620000 1920000 Number of CT140 used 1710000 1960000 Number of direct labor hours spent 270000 320000 Cost of CT140 per unit 168 147 Direct labor wage rate per hour 68 74