It takes about 5 minutes for a customer to fill out the paperwork. Entry of information on the paperwork into the system and verification with past records takes another 7 minutes for a receptionist. There are 2 receptionists. assistants on shift at any moment Table 1 summarizes the process data collected above. . It takes 17 minutes on average for the dental assistant to take an X-ray. There are 4 dental . There are 9 dentists working at the clinic. Each check-up takes 25 minutes on average. Assume further that the dentist gets $125 per hour while receptionist and dental assistant get paid $35 per hour Instruction Round "cost of direct labor to 2 decimal places. Required:
a. What is the labor content?
b. What is the cost of direct labor?

Answer and Explanation:

The computation is shown below:

a. The labor content is

= 7 minutes + 17 minutes + 25 minutes

= 49 minutes per patient

b. The cost of direct labor is

= (9 × $125  + $35 × 6) ÷ (25 patients per hour)

= $1,335 ÷ 25 patients

= $53.40 per patient

By this way it would be calculated

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1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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