PRECISION REPAIR
If you were Brian Jones, what would be your recommendations to Ed Carlson?
Analysis:
Conversion labor hours dollars per process Basic and Deluxe; dividing allocated labor hours
dollars / labor cost (per hour):
BASIC
Cleaning & Repair
$6 / $24 hour => 1/4 hr. (unit)
Assembly
$2 / $18 hour => 1/9 hr. (unit)
Inspection
$2 / $15 hour => 2/15 hr. (unit)
DELUXE
Cleaning & Repair
$3 / $24 hour => 1/8 hr. (unit)
Assembly
$3 / $18 hour => 1/6 hr. (unit)
Inspection
$1.50 / $15 hour => 1/10 hr. (unit)