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Average labor cost including overhead expenses

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Data for a new product that is very labor intensive introduced by Hicks Brothers in the operation in Hendersonville, TN is given below. The average labor cost including overhead expenses is about $20 per hour.

Time for the very first unit = 9 hours

Time for the second unit = 8.462 hours.

What is the labor cost for the 1000-th unit?

  • $75.23
  • $62.30
  • $69.90
  • $55.85

Reference no: EM131372405

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