Data for a new product that is very labor intensive introduced by Hicks Brothers in the operation in Hendersonville, TN is given below. The average labor cost including overhead expenses is about $20 per hour.
Time for the very first unit = 9 hours
Time for the second unit = 8.462 hours.
What is the labor cost for the 1000-th unit?
- $75.23
- $62.30
- $69.90
- $55.85