Based on recent experience, a company knows that its production follows an 80% learning curve. The unit variable onst of the 100 u, which the company just produced, was $30. To complete a price quote for a customer with a special order for another 100 units, the compary needs to knew what their uit varisble ot will h at the end of the special project. Which of the following is the best answer? OA $37.50 OB. $30.00 DC $24.00 OD. $6.00 DE Cannot be determinec from the information given

Based on recent experience, a company knows that its production follows an 80% learning curve. The unit variable onst of the 100 u, which the company just produced, was $30. To complete a price quote for a customer with a special order for another 100 units, the compary needs to knew what their uit varisble ot will h at the end of the special project. Which of the following is the best answer? OA $37.50 OB. $30.00 DC $24.00 OD. $6.00 DE Cannot be determinec from the information given

Name: Based on recent experience, a company knows that its production follo
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Based on recent experience, a company knows that its production follows an 80% learning eurve. The unit variable cost of the 100 unit, which the company justproduced, was $30. To complete a price quote for a customer with a special order for another

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 1EA: Garrison Boutique, a small novelty store, just spent $4,000 on a new software program that will help...

See similar textbooks

Similar questions

Bordner Company manufactures HVAC (heating, ventilation, and air conditioning) systems for commercial buildings. For each new design, Bordner faces a 90 percent learning rate. On average, the first unit of a new design takes 600 hours. Direct labor is paid 25 per hour. Required: 1. Set up a table with columns showing: the cumulative number of units, cumulative average time per unit in hours, and cumulative total time in hours. Show results by row for total production of one unit, two units, four units, eight units, and sixteen units. (Round hour answers to two significant digits.) 2. What is the total labor cost if Bordner makes the following number of units: one, four, sixteen? What is the average cost per system for the following number of systems: one, four, or sixteen? (Round your answers to the nearest dollar.) 3. Using the logarithmic function, set up a table with columns showing: the cumulative number of units, cumulative average time per unit in hours, cumulative total time in hours, and the time for the last unit. Show results by row for each of units one through eight. (Round answers to two significant digits.)
Harriman Industries manufactures engines for the aerospace industry. It has completed manufacturing the first unit of the new ZX-9 engine design. Management believes that the 1,000 labor hours required to complete this unit are reasonable and is prepared to go forward with the manufacture of additional units. An 80 percent cumulative average-time learning curve model for direct labor hours is assumed to be valid. Data on costs are as follows: Required: 1. Set up a table with columns for cumulative number of units, cumulative average time per unit in hours, and the cumulative total time in hours. Complete the table for 1, 2, 4, 8, 16, and 32 units. (Round hours to one significant digit.) 2. What are the total variable costs of producing 1, 2, 4, 8, 16, and 32 units? What is the variable cost per unit for 1, 2, 4, 8, 16, and 32 units?
NUBD Company is planning to introduce a new product with an 80 percent learning rate for production for batches of 1,000 units. The variable labor costs are P30 per unit for the first 1,000-unit batch. Each batch requires 100 hours. There are P10,000 in fixed costs not subject to learning. What is the cumulative total time (labor hours) to produce 16,000 units based on the cumulative average-time learning curve? A. 655.36 hours B. 256 hours C. 160 hours D. 409.6 hours
NUBD Company is planning to introduce a new product with an 80 percent learning rate for production for batches of 1,000 units. The variable labor costs are P30 per unit for the first 1,000-unit batch. Each batch requires 100 hours. There are P10,000 in fixed costs not subject to learning. What is the cumulative total time (labor hours) to produce 16,000 units based on the cumulative average-time learning curve? 655.36 hours 256 hours 160 hours 409.6 hours
NUBD Company is planning to introduce a new product with a 75 percent incremental unit-time learning curve for production in batches of 1,500 units. The variable labor costs are P55 per unit for the first 1,500-unit batch. Each batch requires 200 hours. There are P15,000 in fixed costs not subject to learning. What is the cumulative total time (labor hours) to produce 3,000 units?
Sandhill’s managers have determined that variable costs per unit will increase by 20% beginning next month. To offset this increase in costs, they are considering a 20% increase in the sales price. Market research indicates that the price increase will result in a 2% decrease in the number of learning systems Sandhill sells. What will be Sandhill’s expected operating income if the price increase is implemented? (Round per unit calculations to 2 decimal places e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.) Total Per Unit Sales revenue $687,500 $55 Variable expenses 240,625 19.25 Contribution margin 446,875 $35.75 Fixed expenses 312,000 Operating income $ 134,875
Your company has received an order for 20 units of aproduct. Th e labor cost to produce the item is $9.50 per hour. Th esetup cost for the item is $60 and material costs are $25 per unit. Th e item is sold for $92. Th e learning rate is 80 percent. Overheadis assessed at a rate of 55 percent of unit labor cost.(a) Determine the average unit cost for the 20 units if the fi rstunit takes four hours.(b) Determine the minimum number of units that need to bemade before the selling price meets or exceeds the averageunit cost.
FNG Paint (Pty) Ltd produces finger paint and sells them to pre‐schools. The following information relates to a set of finger paint. A set of finger paint is considered to be one unit. Direct labour needed for the first set of paint 4 hoursDirect labour costs per unit R30 per hourDirect material costs per unit R25Total Fixed costs R2 000Learning curve 80% Using the learning curve theory and information provided above, calculate the expected average cost for one set of paint should four and sixteen sets be produced, respectively. Round off to two decimal places.
ondor Airplane Company has built a new model jet aircraft which it intends to sell to high net worth clients. This aircraft required 25,000 hours to complete. Condor believes an incremental unit-time learning model with an 82% learning curve best reflects the company's production efficiency. Condor just received a contract to make fifteen identical aircraft. What will be the expected unit time for the sixteenth aircraft?
The manufacturing process of a new product is very labor intensive. The learning curve percentage (LC) for the process is 90%. It took 30 hours with 15 workers together to produce the first product. The average labor cost including overhead expenses is about $20 per hour. (a) Estimate the labor cost (including overhead expenses) to produce the tenth product? (Hint: 2 steps. How long is T_10? How much is the cost?) (b) A new training program is intended to lower the learning-curve percentage by 10% (minus 10%). If the program is successful, what cost savings will be realized for the tenth unit? (Hint: How long is the new T_10? How much is the new cost? How much is the cost saving?)
Sharon Glessing, controller for Janson Company, has noticed that the company faces a 80 percent learning rate for its specialty design line. In planning the cost of the latest design, Sharon assumed that the first set of units would take 1,100 direct labor hours. She decided to use this information in budgeting for the cost of the total project, which would involve the manufacture of 16 sets. Direct labor is paid $40 per hour. 1. Complete the table below showing results by row for total production of: one unit, two units, four units, eight units, and sixteen units. (Round hour answers to two significant digits.) (Round Cumulative Total Time answers to the nearest whole number.) 2. What is the total labor cost if Janson Company makes eight sets? Sixteen sets? (Use the rounded answers in the subsequent computations). 3. Using the logarithmic function, complete the table below showing results by row for each of unit sets one through eight. (Round hour answers to two significant digits.)…
Average labor cost for the first 700 units of a product is RO 50 and the average labor cost of first 1400 units is RO 45. Average time per unit is 100 minutes. The learning ratio and the average labour cost for first 2800 units will be: a. 80% and RO 36.000 b. 90% and RO 40.500 c. 85% and RO 38.250 d. 95% and RO 42.750