Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mack's guitar fabrication shop produces low cost, highly durable guitars for beginners. Typically, out of the 100 guitars that begin production each month, only

image text in transcribed

Mack's guitar fabrication shop produces low cost, highly durable guitars for beginners. Typically, out of the 100 guitars that begin production each month, only 78 percent are considered good enough to sell. The other 22 percent are scrapped due to quality problems that are identified after they have completed the production process. Each guitar sells for $240. Because some of the production process is automated, each guitar only requires 8 labor hours. Each employee works an average of 160 hours per month. Labor is paid at $10 per hour, materials cost is $40 per guitar, and overhead is $3.800 a. The labor productivity ratio for Mack's guitar fabrication shop is ! per hour. (Enter your response rounded to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Eric Noreen and Peter Brewer

14th edition

978-007811100, 78111005, 978-0078111006

More Books

Students also viewed these Accounting questions

Question

What elements of multimedia-based instruction facilitate learning?

Answered: 1 week ago