Question

An industrial engineer must estimate the cost of building a storage tank. The tank requires 208 sq ft of material at $9.29 per square foot. It also requires 4.5 hours of labor at $26.40 per hour plus 1.6 hours of labor at $19.60 per hour. Find the total cost of the tank.

Answer 1

The total cost of making the tank equals $2,082.48

Explanation:

Giving the following information:

The tank requires 208 sq ft of material at $9.29 per square foot.

It also requires 4.5 hours of labor at $26.40 per hour plus 1.6 hours of labor at $19.60 per hour.

To calculate the total cost, we need to multiply the unitary variable cost by the total amounts:

Direct material= 9.29*208= $1,932.32

Direct labor= 4.5*26.4 + 1.6*19.6= $150.16

The total cost of making the tank equals $2,082.48