Give correct typing answer with explanation Carr Company produced a pilot run of seventy units of a recently developed piston used in one of its products. Carr expected to produce and sell 1,950 units annually. The pilot run required an average of 0.55 directlabor hours per piston for 70 pistons. Carr experienced an seventy percent learning curve on the direct labor hours needed to produce new pistons. Past experience indicated that learning tends to cease by the time1,120 pistons are produced.Carr's manufacturing costs for pistons are presented below.Direct laborVariable overheadFixed overheadMaterials$ 15.00 per direct labor hour15.00 per direct labor hour20.00 per direct labor hour6.00 per unitCarr received a quote of $7 per unit from Truck Machine Company for the additional 1,880 needed pistons. Carr frequently subcontracts this type of work and has always been satisfied with the quality of the unitsproduced by Truck.If the pistons are manufactured by Carr Company, the total direct labor hours for the first 1,120 pistons (including the pilot run) produced is calculated to be (round to two digits after the decimal point):Multiple Choice159.73.141.38.134.80.147.91144.64.

The required answer is given below:Explanation:To calculate the total direct labor hours for the…

Answered: Carr Company produced a pilot run of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6PA: Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A...

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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?
Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?
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