A packaging employee making \$16 per hour can package 320 items during that hour. The direct material cost is \( \$ 0.4 \cap \) per item. What is the total direct cost of 1 item? \[ \$[?] \] Round to the nearest thousandth.
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To find the total direct cost of 1 item, we need to consider both labor and material costs. The packaging employee makes $16 per hour and can package 320 items. First, we calculate the labor cost per item: \[ \text{Labor cost per item} = \frac{16}{320} = 0.05 \text{ dollars} \] Next, we add the direct material cost, which is $0.40 per item: \[ \text{Total direct cost per item} = \text{Labor cost per item} + \text{Material cost per item} = 0.05 + 0.4 = 0.45 \text{ dollars} \] So, the total direct cost of 1 item is: \[ \$[0.450] \]