Question: Four holes must be drilled in a casting which forms the housing for an electric motor. The holes may be located and drilled without the

Four holes must be drilled in a casting which forms the

Four holes must be drilled in a casting which forms the housing for an electric motor. The holes may be located and drilled without the aid of a jig by a skilled machinist whose wage rate is $25 per hour. His production time will be 1.5 minutes per housing. A jig could be built at a cost of $500 permitting the holes to be drilled by a machinist at a lower skill level. In this case the lower wage rate would be $15 per hour and the production rate would be two minutes per housing.Which alternative would you recommend if 4,000 housings are to be produced

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