Final answer:
The cost of direct labor for the lawyer is $500 per customer. The labor utilization of the lawyer is 60%.
Step-by-step explanation:
A. To calculate the cost of direct labor for the lawyer per customer, we need to find the total labor cost and divide it by the number of customers. Firstly, we calculate the total labor cost for a 10-hour day:
Total Labor Cost = Wage Rate x Hours Worked
Total Labor Cost = $150/hour x 10 hours
Total Labor Cost = $1500
Next, we divide the total labor cost by the number of customers:
Cost per Customer = Total Labor Cost / Number of Customers
Cost per Customer = $1500 / 3
Cost per Customer = $500
Therefore, the cost of direct labor for the lawyer is $500 per customer.
B. To calculate the labor utilization of the lawyer, we divide the total time spent serving customers by the total available time:
Labor Utilization = Time Spent Serving Customers / Total Available Time
Labor Utilization = 120 minutes/customer x 3 customers / (10 hours x 60 minutes/hour)
Labor Utilization = 6 hours / 10 hours
Labor Utilization = 0.6
Therefore, the labor utilization of the lawyer is 0.6 or 60%..