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 45 minutes at a cost of $19 per hour for direct labor and $5 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? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Answer 1

Direct labor rate = $19 per hour

Detailing time = 45 minutes per car

Cost of material per detailing = $5 per car

Number of car sold per day = 7

Average cost per 5 day week for detailing car = ?

Cost of direct labor for 5 day week = Detailing time x Direct labor rate x Number of car sold

= 45/60 x 19 x 7 x 5

= $498.75

Cost of material used =  Cost of material per detailing x Number of car sold per day x 5

= 5 x 7 x 5

= $175

Average cost per 5 day week for detailing car = Cost of direct labor for 5 day week + Cost of material used

= 498.75 + 175

= $673.75

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