Stackhouse Computing produces
high-performance desktop computers. Labor cost data show that the...

Question

Stackhouse Computing produces
high-performance desktop computers. Labor cost data show that the company spent
$1,000,000 for 5,000 computers produced, and each computer requires 2
technician hours and 5 hours of direct labor. Direct labor is paid $10 per hour
by the company. What is the cost of 1 technician hour?

Prince · Accepted Answer

Stackhouse Computing produces high-performance desktop computers. Labor cost data show that the company spent $1,000,000 for 5,000 computers produced, and each computer requires 2 technician hours and 5 hours of direct labor. Direct labor is paid $10 per hour by the company. What is the cost of 1 technician hour?
Solution: 
Cost of Producing 5,000 high-performance desktop computers = $1,000,000
Cost of Producing 1 high-performance desktop computer 
= Cost of Producing 5,

Stackhouse Computing produces high-performance desktop computers. Labor cost data show that the company spent $1,000,000 for 5,000 computers produced, and each computer requires 2 technician hours and...

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