Answer:
$750 per customer
Explanation:
Given that,
Time taken to serve 1 customer = 120 minutes
Demand = 2 customers per day
Wage rate = $150 per hour
Total available hours per 10-hour day:
= 10 × 60 minutes
= 600 minutes
Time taken for serving three customers:
= 120 minutes × 2
= 240 minutes or 4 hours
Labor cost of lawyer for servicing hours:
= Wage rate × Time taken for serving three customers
= $150 per hour × 4 hours
= $600
Direct labor cost of lawyer for 10-hours (2 customers):
= Wage rate × 10 hours
= $150 per hour × 10 hours
= $1,500
There is a 6 hours difference between the available hours and service hours. Since, the lawyer is attending 2 customers in an 10 hours day, the aforesaid 6 hours cost should be equally loaded on the 2 customers and then one customer = 6/2 = 3 hours
Direct labor cost for one customer:
= Direct labor cost of lawyer for 10-hours (2 customers) ÷ No. of customers
= $1,500 ÷ 2
= $750 per customer
