[gohar181]

1. Material Cost per Unit (Wiring)
Ideal requirement: 25 cm = 0.25 meters per radio

Waste: 2% of wire is wasted, so only 98% is usable

Therefore, to get 0.25 m of usable wire, we must purchase more than that

? Adjusted Wire Requirement per Unit:
Required wire to buy
=
0.25
0.98
=
0.2551
 meters (rounded to 4 dp)
Required wire to buy=
0.98
0.25
?
=0.2551 meters (rounded to 4 dp)
? Material Cost per Unit:
0.2551
×
0.50
=
$
0.1276
?
$
0.13
0.2551×0.50=$0.1276?
$0.13
?
2. Labour Cost per Hour (Including Idle Time)
Time to assemble = 30 minutes = 0.5 hours per radio

Hourly wage = $12.60

Idle time = 10% ? Only 90% of hours are productive

? Effective Productive Hours:
To get 0.5 productive hours, we need to pay for more time.

Paid hours
=
0.5
0.9
=
0.5556
 hours (rounded to 4 dp)
Paid hours=
0.9
0.5
?
=0.5556 hours (rounded to 4 dp)
? Labour Cost per Unit:
0.5556
×
12.60
=
$
7.0006
?
$
7.00
0.5556×12.60=$7.0006?
$7.00
?
2. Labour Cost per Hour (Including Idle Time)
Time to assemble = 30 minutes = 0.5 hours per radio

Hourly wage = $12.60

Idle time = 10% ? Only 90% of hours are productive

? Effective Productive Hours:
To get 0.5 productive hours, we need to pay for more time.

Paid hours
=
0.5
0.9
=
0.5556
 hours (rounded to 4 dp)
Paid hours=
0.9
0.5
?
=0.5556 hours (rounded to 4 dp)
? Labour Cost per Unit:
0.5556
×
12.60
=
$
7.0006
?
$
7.00
0.5556×12.60=$7.0006?
$7.00
?

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