PA 4-4 Mr. K\'s is a very popular hair salon. It... Mr. K\'s is a very popular h
ID: 387228 • Letter: P
Question
PA 4-4 Mr. K's is a very popular hair salon. It... Mr. K's is a very popular hair salon. It offers high-quality hairstyling and physical relaxation services at a reasonable price, so it always has unlimited demand. The service process includes five activities that are conducted in the sequence described below. (The time required for each activity is shown in parenthesis): Activity 1: Welcome a guest and offer homemade herb tea. (7 minutes) Activity 2: Wash and condition hair. (8 minutes) Activity 3: Neck, shoulder, and back stress release massage. (9 minutes) Activity 4: Design the hairstyle and do the hair. (29 minutes) Activity 5: Check out the guest. (2 minutes) Three servers (S1, S2, and S3) offer the services in a worker-paced line. The assignment of tasks to servers is the following: S1 does Activity 1. S2 does activities 2 and 3. S3 does activities 4 and 5 Instruction: Do not round your intermediate calculations. Round average labor utilization to 2 decimal places and all direct labor costs to 2 decimal places. a. What is the labor content? minutes per customer b. What is the average labor utilization? percent At a wage rate of $15 per hour, what is the cost of direct labor C. per customer per customer? Mr. K. considers hiring a new employee to help any one (and by each server. What would the new direct labor cost be Mr. K also contemplates redesigning the assignment of tasks Activity 5 from S3 to S1. What would the new direct labor cost d. only one) of the servers without changing the tasks performed per customer e to servers. For this, Mr. K is evaluating the reassignment of per customer be?Explanation / Answer
PA 4-4
a) labor Content= time sum of all process = 55 Minutes per customer
b) Average labor utilization: Total Labor content / (Total Labor content + Idle Time) * 100
Idle Time for S1 = 0
Idle Time for S2 = 7
Idle Time for S3 = 24
Hence, 55 / 55+31 * 100 = 63.95 %
c) Direct Labor Cost = Wage Rate * Labor Content * Number of Servers / 60 = $41.75 per customer
d) New direct Labor Cost = $55 per Customer
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