A manual process takes 18 minutes of direct labor time and six pounds of material to produce a product. Automating the process requires 12 minutes of machine time and 5 pounds of material. The cost per labor hour is $9, the cost per machine hour is $7, and the cost per pound of materials is $11. Find the non-value added cost for the above situation
A) $2.40 per unit
B) $9.00 per unit
C) $12.30 per unit
D) $1.70 per unit
C
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