Answer: the total direct cost of one item is $0.47.
Explanation:
If the packaging employee makes $14 per hour and can package 200 items in one hour, the direct labor cost per item would be:
Direct labor cost per item = Hourly wage rate / Number of items packaged per hour
Direct labor cost per item = $14 / 200
Direct labor cost per item = $0.07
The direct material cost per item is given as $0.40.
Now we can calculate the total direct cost per item:
Total direct cost per item = Direct labor cost per item + Direct material cost per item
Total direct cost per item = $0.07 + $0.40
Total direct cost per item = $0.47