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Question - A company manufactures two products, A and B. The following information is available:
Product A
Product B
Number of units produced per month
2.800
4,200
Labour time per unit (minutes)
48
36
Unavoidable non productive labour time is 25% of productive time, and is paid at $3 per hour.
Labour is paid $8 per unit of product A produced and £6 per unit of product B. What is the monthly labour cost of the company?
A. $40,740
B. $53,970
C. $54,180
D. $51,170
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