QUESTION 21 1 points Save Answer C&A; Fast Food has four activities in serving a

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QUESTION 21 1 points Save Answer C&A; Fast Food has four activities in serving a customer greet customer, take ordec process order, and deliver order. Each activity is staffed by one employee for a total of four employees). The processing time for each activity ls given as follows Assume demand is unlimited. Each employee is paid $7.50 per hour. itf one additional employee is added to the bottieneck activity, what will be the cost of direct labor in $ per customer? 0.3125 0.25 0.125 0.50 Click Save and Subrit to save and subwt Click Save All Answers to save all aers Save All Answers and Submit

Explanation / Answer

Question 21

Third Activity (Process Order) has the longest processing time (60 seconds). Therefore, it is the bottleneck. So additional employee needs to be added to this activity. After addition of an employee, there are two employees dedicated to this activity.

Capacity of an activity = (3600 seconds per hour /processing time )* Number of employees

Calculation of capacity of each activity using the above formula is as below

The minimum capacity of the activities is 120 customers per hour.

Total cost per hour = Number of employees * Cost per employee per hour = 5*7.5 = $ 37.5 per hour

Cost in direct labor per customer = Total cost per hour / Capacity (customers per hour) = 37.5/120 = 0.3125

ANSWER: 0.3125

Activity Processing time per customer (seconds) Number of employees Capacity (customers per hour) Greet Customer 2 1 1800 Take Order 30 1 120 Process Order 60 2 120 Deliver Order 5 1 720

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