Question: Chairs are assembled in two steps, with one worker at each. The first step takes 60 seconds. The second step takes 85 seconds. The factory

Chairs are assembled in two steps, with one worker at each. The first step takes 60 seconds. The second step takes 85 seconds. The factory is active for five 8-hour days each week. Workers are paid $20/hour and there is unlimited demand.

How many minutes of direct labor go into each unit of output? How much idle time does each worker have per unit of output?

What is the average labor utilization? What is the direct labor cost per unit?

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