Question
You are a small business owner that operates a juice company. You have three employees in your company all doing different steps in the process.
You are a small business owner that operates a juice company. You have three employees in your company all doing different steps in the process. The order of the steps are: set the bottle up for filling; fill the bottle; and test quality. The time each step takes are: step 1 takes 10 minute; step 2 takes 15 minutes; and step 3 takes 20 minutes. The 3 employees you have only work on one step and are paid accordingly. Ram works on step 1 and is paid $10/hr; Robin works on step 2 and is paid $15/hr; and Anjali works on step 3 and is paid $20/hr. Based on all this information “Conduct Labour Cost Calculation.”
Based on the juice company scenario calculate:
Process Capacity (Use Correct Units)
Cycle Time (Use Correct Units)
Cost of Direct Labour
Total Idle Time
Labour Content
Average Labour Utilization
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
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