(Answered) A certain product requires exactly 48 minutes of total

Management Studies

A certain product requires exactly 48 minutes of total active assembly time to completely assemble through four different operations. Each operation has one worker. Since workers are all paid $15/hour, the company calculates the cost of direct labor for this product as $15/hour * 48/60 = $12 per unit. Explain, intuitively, why this calculation is (most likely) incorrect.

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Business Management, Management Studies

Category:- Business Management
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