C&A Fast Food has four activities in serving a customer: greet customer, take order, process order, and deliver order. Each activity is staffed by one employee (for a total of four employees). The processing time for each activity is given as follows:

Activity
Processing time per customer
Wage rate
($ Per hour)
Greet customer
2 seconds
5
Take order
30 seconds
5
Process order
60 seconds
15
Deliver order
5 seconds
8

Assume demand is unlimited. If one additional employee is added to the bottleneck activity, what will be the cost of direct labor in $ per customer？

A.0.275
B.0.3125
C.0.40
D.
0.50

B.0.3125

Explanation:

The computation of the cost of direct labor in $ per customer is shown below:

= Total employee cost ÷ take order time

where,

Total employee cost equal to

= Each employee wages rate per hour × number of employees

= $7.5 × 5

= $37.5

And, the take order time is

= 30 × 4 employees

= 120

So, the cost of direct labor per customer is

= $37.5 ÷ 120

= 0.3125

an employee's increased output after additional training

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whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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