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Consider a process consisting of three resources. Assume there exists unlimited demand for the product, and that all activities are always performed in the following
Consider a process consisting of three resources. Assume there exists unlimited demand for the product, and that all activities are always performed in the following sequence.
Resource has a processing time of minutes per unit.
Resource has a processing time of minutes per unit.
Resource has a processing time of minutes per unit.
All three resources are staffed by one worker and each worker gets paid $ per hour.
a What is the cost of direct labor?
Note: Do not round your intermediate calculations. Round your answer to decimal places.
Cost of direct labor
per unit
b What is the labor content?
Labor content
minutes per unit
c How much idle time does the worker at resource have per unit?
Idle time
minute
d What is the average labor utilization?
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