Direct Material and Labor Cost
Through analysis of all the raw materials, purchased parts, fabrication and assembly the cost to produce on adjustable desk riser is $75.62. The breakdown of costs per functional area are as follows:
Direct Materials Cost: $50.77
Fabrication Labor Cost: $22.92
Assembly Labor Cost: $1.57
Cost Percentage of Scrap: 6%
Total costs for direct labor to produce 195,000 units in year five will be $4,775,124.61.
Direct Materials Cost: $50.77
Fabrication Labor Cost: $22.92
Assembly Labor Cost: $1.57
Cost Percentage of Scrap: 6%
Total costs for direct labor to produce 195,000 units in year five will be $4,775,124.61.