It takes a lawyer 120 minutes to serve one customer. Demand is 2 customers per eight-hour day. The lawyer has a wage rate of $200 per hour. What is the cost of direct labor for the lawyer expressed in $per customer?

Glenn Dental Clinic provides general dental care to residents of Philadelphia on a walk-in basis. The clinic has started receiving complaints from patients that the waiting time is too long and has asked you to investigate whether this problem can be solved.

Upon arrival, customers receive a form from the receptionist and fill out relevant information such as personal health records and insurance provider. The form is then handed back to the receptionist who enters the information into the computer system for the dentist to see. A dental assistant then takes an X-ray from the patient. A dentist then performs the checkup and discusses any issues with the patient.

Based on conversations with staff members at the clinic, you have obtained the following information on the process:

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 5 minutes for a receptionist. There are two receptionists.

It takes 15 minutes, on average, for the dental assistant to take an X-ray. There are three dental assistants on shift at any moment.

There are 10 dentists working at the clinic. Each checkup takes 30 minutes, on average.

The following table summarizes the process data collected above.

Resource: Process: Staffing #: Processing Time: Min per Patient

Self Service Paper Work 0 5

Receptionist Data Entry 2 5

Dental Assistant X-Ray 3 15

Dentist Check Up 10 30

Assume that there exists unlimited demand, unless otherwise stated. Assume further that the dentists get paid $100 per hour while the receptionists and dental assistants get paid $30 per hour.

a.

What is the labor content?

b.

What is the cost of direct labor?