The Toyota Truck plant in Indiana produces 150,000 trucks per year. The plant runs one 8-hour shift, 300 days per year, and makes 500 trucks per day. About 1300 people work on the final assembly line. Each car has about 20 labor hours per car in it.
a. Assuming the truck sells for $16,000 and workers earn $30 per hour in wages and benefits, what percentage of the cost of the truck is in direct labor?
b. What is the production rate of the final assembly line?