Hubley Motors manufactures and sells offroad vehicles. The October sales were 56,000,000. Monthly design costs...

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Hubley Motors manufactures and sells offroad vehicles. The October sales were 56,000,000. Monthly design costs are $112,000 and rework is running at S?5,000 per month. Its painting department is fully automated and requires substantial inspection to keep the machines operating properly. An improperly painted vehicle is very expensive to correct, and inspection hours for the 8,000 vehicles painted in October totaled 4,480 hours [with 30 employees}, who earn an average of $37.50 an hour. Ten litres of paint were used on average for each vehicle. The standard amount of paint per vehicle is nine litres. . What are appraisal costs as a percentage of sales? {'- I 1 37% ['- I 0.93% (I t) 2.80% [Ft] 1 25%

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