Question - Harry's Picture manufactures various picture frames. He spends $ 20 on raw material for each frame. Each new employee takes 5 hours to make the first picture frame and 4 hours to make the second. He pays $20 per hour to his employee. The manufacturing overhead charge per hour is $10.
What is the total cost of building 8 picture frames by a new employee using the cumulative average-time method? You may use an index of -0.1520.
A) $876
B) $1,036
C) $129.50
D) $400