It would cost $ 1000 for the company to fill the 30,000 board order.
Step-by-step explanation:
Given details-
Inspection- on 20% of the net boards produced
Inspection cost- $ 10 per hour spent
The time needed to inspect one board- 1 minute
Total order- 30,000 board
The total cost to the company
Total board on which inspection needs to be carried- 20% of 30,000
= (20/100) *30,000 = 6000 boards
The time needed to inspect 1 board is 1 minute. Hence time needed to inspect 6000 board is 6000 minutes which is equivalent to 100 hrs (since 1 hr equals 60 min)
Cost of inspecting= $ 10 per hour
Cost to inspect 100 hours= 10*100= $ 1000
Hence cost accrued to the company to produce 30,000 boards is $ 1000