Question

A packaging employee making $20

per hour can package 160 items
during that hour. The direct
material cost is $.50 per item. What
is the total direct cost of 1 item?

Answer 1

To find the total direct cost of one item, we need to calculate the sum of the direct labor cost and the direct material cost.

Direct labor cost per item = (hourly rate)/(number of items per hour) = $20/160 = $0.125 per item

Direct material cost per item = $0.50 per item

Total direct cost per item = direct labor cost per item + direct material cost per item

= $0.125 + $0.50 = $0.625

Therefore, the total direct cost of one item is $0.625.