Question

Williams Performance Co. manufactures sports cars. After making a sale, the salesperson sends the car to be detailed before the customer takes it home. Detailing the car takes 60 minutes at a cost of $18 per hour for direct labor and $7 per car for materials. If the average salesperson sells seven cars per day, what is the average cost per 5-day week for detailing cars?

Answer 1

Answer

• Cost of Direct Labor = 7 cars per day x 5 days of week x 1 hr x $ 18 per hour = $ 630
• Cost of Material = 7 cars per day x 5 days of week x $ 7 per car = $ 245
• Answer = 245 + 630 = $ 875 =Average Cost per week