Question

It takes about 5 minutes for a customer to fill out the paperwork. Entry of information on the paperwork into the system and verification with past records takes another 7 minutes for a receptionist. There are 2 receptionists. assistants on shift at any moment Table 1 summarizes the process data collected above. . It takes 17 minutes on average for the dental assistant to take an X-ray. There are 4 dental . There are 9 dentists working at the clinic. Each check-up takes 25 minutes on average. Assume further that the dentist gets $125 per hour while receptionist and dental assistant get paid $35 per hour Instruction Round "cost of direct labor to 2 decimal places.

Required:
a. What is the labor content?
b. What is the cost of direct labor?

Answer 1

Answer and Explanation:

The computation is shown below:

a. The labor content is

= 7 minutes + 17 minutes + 25 minutes

= 49 minutes per patient

b. The cost of direct labor is

= (9 × $125 + $35 × 6) ÷ (25 patients per hour)

= $1,335 ÷ 25 patients

= $53.40 per patient

By this way it would be calculated