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A Tiger Biscuits factory plans to produce 10,000 units in a month. The standard time for producing 200 units is 8 hours. The company pays Rs. 40 per hour.?
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A Tiger Biscuits factory plans to produce 10,000 units in a month. The standard time for producing 200 units is 8 hours. The company pays Rs. 40 per hour.?
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Here's how we can calculate the labor cost for the Tiger Biscuits factory:
1. Calculate the time to produce one unit:
- Standard time for 200 units: 8 hours
- Time for one unit: 8 hours / 200 units = 0.04 hours/unit
2. Calculate the total time to produce 10,000 units:
- Time for 10,000 units: 0.04 hours/unit * 10,000 units = 400 hours
3. Calculate the total labor cost:
- Hourly rate: Rs. 40/hour
- Total labor cost: 400 hours * Rs. 40/hour = Rs. 16,000
Therefore, the total labor cost for producing 10,000 units of Tiger Biscuits in a month is Rs. 16,000.