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A Manual Process Takes 36 Minutes of Direct Labour Time

Question 128

Multiple Choice

A manual process takes 36 minutes of direct labour time and 12 kg of material to make a product.Automating the process requires 24 minutes of machine time and 10 kg of material.The cost per labour hour is $18,the cost per machine hour is $14,and the cost per kilogram of materials is $22.What is the non-value-added cost per unit?


A) $5.60 per unit
B) $10.80 per unit
C) $44.00 per unit
D) $49.20 per unit

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