Guitar fabrication shop produces low? cost

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Reference no: EM131400168

Mack's guitar fabrication shop produces low? cost, highly durable guitars for beginners.? Typically, out of the 100 guitars that begin production each? month, only 82 percent are considered good enough to sell. The other 18 percent are scrapped due to quality problems that are identified after they have completed the production process. Each guitar sells for ?$260. Because some of the production process is? automated, each guitar only requires 10 labor hours. Each employee works an average of 160 hours per month. Labor is paid at ?$11 per? hour, materials cost is ?$40 per? guitar, and overhead is ?$4 comma 2004,200.

a. The labor productivity ratio for? Mack's guitar fabrication shop is ?$ nothing per hour. ?(Enter your response rounded to two decimal? places.)

Reference no: EM131400168

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