Answer:
4 per hour
Explanation:
The computation of the current hourly cost of defect is shown below:
= Defective average × cost of inspector × replacement cost
where,
The Defective average is 0.02
The Cost of the inspector is $8
And, the replacement cost is $25
Now placing these values to the above formula
So, the current hourly defective cost is
= 0.02 × $8 × $25
= 4 per hour