A Manual Process Takes 20 Minutes of Direct Labor Time

Multiple Choice

A manual process takes 20 minutes of direct labor time and 8 pounds of material to produce a product.Automating the process requires 16 minutes of machine time and 6 pounds of material.The cost per labor hour is $10, the cost per machine hour is $8, and the cost per pound of materials is $12. Find the nonvalue-added cost for the given situation.(Note: Round all calculations and the answer to two decimal places.)

A) $22.40 per unit
B) $9.00 per unit
C) $25.20 per unit
D) $1.70 per unit