A production system has a burden rate of 280 per hour The se

A production system has a burden rate of $280 per hour. The setup time for a machined product is 30 minutes, and the system can produce a finished part every 10 minutes. For a lot size of 50 parts, determine the total cost per part? (Enter your answer without the dollar $ sign.)

Solution

setup time for a machined product is = 30 min

time for manufacturing for single product is = 10min

time for 50 product = 30+(50x10)

=530min

= 530/60

= 8.833hr

total cost = 280 x 8.83

=$2473.33