How many direct-assembly labor-hours are required to assemble the first four products? What is the total cost of assembling the first four products? What is the total cost of assembling the Third product? What is the total cost of assembling the eight products, assuming learning curve do not exist?
The XYY Company has received an initial order for four of its products (WW500). The information about products as follows:
- Direct material cost per (WW500) $ 200,000
- Direct- assembly labor time for first (WW500) 4,000 labor-hours
- Learning curve for assembly labor time per (WW500) 80% cumulative average time
- Direct -assembly labor cost $ 50 per hour
- Equipment-related indirect
- Material-handling-related indirect manufacturing cost 40% of direct material cost
- Setup-related indirect manufacturing cost 10% of prime cost
-Inspection-related indirect manufacturing cost 20% of direct labor
- Fixed
- b = –0.25
Required
- How many direct-assembly labor-hours are required to assemble the first four
products?
- What is the total cost of assembling the first four products?
- What is the total cost of assembling the Third product?
- What is the total cost of assembling the eight products, assuming learning curve do not exist?
- Identify differ of total cost of assembling four products with and without learning curve?
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