Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 8

Montross Lumber processes wood to be shipped to construction companies. In order to keep their products uniform, Montross conducts inspections on 20 percent of the boards produced. Inspections cost the company $10 per hour and it takes one minute to inspect each board. How much would it cost to fill an order for 30,000 boards