Final answer:
The total direct cost of one item is calculated by adding the labor cost per item ($0.08) to the material cost per item ($0.50), resulting in $0.58.
Step-by-step explanation:
The question asks to calculate the total direct cost of producing one item considering both labor and material costs. An employee earning $16 per hour can package 200 items in that hour which means the labor cost per item is $16 divided by 200, resulting in $0.08 per item for labor cost. The direct material cost given is $0.50 per item. To find the total direct cost for one item, you add the direct labor cost per item to the direct material cost per item: $0.50 + $0.08 = $0.58.