Should management accept or reject the proposal

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Reference no: EM133620341

Question

The assembly activity for a new smartphone is as follows: Activity Activity-Base Usage (hrs. per unit) × Activity Rate per Hour (S-1) = Activity Cost Assembly 0.45 $15.00 $6.75 A product engineer proposes using a higher-rated employee to perform the assembly on the new phone. Their analysis has shown that an S-2 employee can perform the assembly in 0.30 hour per unit. Determine the Assembly activity cost using the S-2 labor classification. Assembly: 0.30 × $20 = $6.00 Should management accept or reject the proposal.

Reference no: EM133620341

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