Table 13-6 Wooden Chair Factory

Multiple Choice

Table 13-6
Wooden Chair Factory
-Refer to Table 13-6. Each worker at the Wooden Chair Factory costs $12 per hour. The cost of each machine is $20 per day regardless of the number of chairs produced. Assume the number of machines does not change. If the factory produces at a rate of 78 chairs per hour, what is the total machine cost per day?

A) $20
B) $40
C) $240
D) We are unable to determine total machine costs from the information given.