Question
Salley is developing material and labor standards for her company. She finds that it costs $0.55 per pound of material per widget. Each widget requires
Salley is developing material and labor standards for her company. She finds that it costs $0.55 per pound of material per widget. Each widget requires 6 pounds of material per widget. Salley is also working with the operations manager to determine what the standard labor cost is for a widget. Upon observation, Salley notes that it takes 3 hours in the assembly department and 1 hour in the finishing department to complete one widget. All employees are paid $10.50 per hour.
What is the standard labor cost per unit for a widget?
Group of answer choices:
A. $42
B. $50
C. $54
D. $65
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