Chips, Inc. has developed a new production process to manufacture its product. The new process is complex and requires a high degree of technical skill. However, management believes there is a good opportunity for the employees to improve as they become more familiar with the production process. The production of the first unit requires 100 direct labor hours. If a 70% learning curve is used, using the cumulative average time model, the cumulative direct labor hours required to produce a total eight units would be: O 196 hours 392 hours 274 hours O 560 hours

Chips, Inc. has developed a new production process to manufacture its product. The new process is complex and requires a high degree of technical skill. However, management believes there is a good opportunity for the employees to improve as they become more familiar with the production process. The production of the first unit requires 100 direct labor hours. If a 70% learning curve is used, using the cumulative average time model, the cumulative direct labor hours required to produce a total eight units would be: O 196 hours 392 hours 274 hours O 560 hours

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Apparelle Co. developed the following equation to predict certain components of its budget for the coming period: Costs = $50,000 + ($5 x direct labor hours) The $5 would approximate:a. total costb. direct labor rate per hourc. fixed cost per direct labor hourd. variable costs per direct labor hour
Yammy Company currently produces ultimate discs in an automated process. Expected production per month is 80,000 units. The required direct materials costs $0.20 per unit and labor costs $0.10 per unit. Manufacturing fixed overhead costs are $5,000 per month. Manufacturing overhead is allocated based on units of production. What is the flexible budget total product costs for 80,000 and 40,000 units, respectively?
vega Inc dealing with soft toys and it has provided the following details where it needs to calculate Efficiency and Capacity ratio of the unit: Budgeted production = 80 units Actual production= 60 units Standard time per unit=8 hours Actual hours worked= 500 hours.
Dawn is preparing a budget for her operation. She has forecasted revenue of $1,200,000 for the budget period and now wants to complete the variable expenses portion for her forecast. Dawn reviewed her historical cost percentage records. She then established her target variable cost percentages for several variable cost categories. Use Dawn's target cost percentages to complete her variable expense forecast.
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 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 unit variable cost will be at the end of the special project. Which of the following is the best answer? O A. $37.50 O B. $30.00 OC. $24.00 D D. $6.00 DE. Cannot be determinec from the information given
Given the following information in standard costing: Standard 18,200 hours at $6.20 Actual 18,000 hours at $6.00 What is the direct labor rate variance?
A project ABC is planned for 15 months with a budget (BAC) of USD 150,000. If the scheduled percent of work completed after three months is 20% and the actual work completion is 15%, Find the schedule variance and schedule performance index also conclude the project status that you will identify after calculating SV and SVI.
11-If the learning ratio is 80%, and the first unit produced took 120 hours. What will be the time (hours) required to produce the second, fourth, eighth, and sixteenth units. a. 240,360,480,600 b. 120, 96, 76.8 and 61.44 c. 96, 76.8, 61.44 and 49.15 d. None of the given options
The budget of Bisby plc shows total production overheads of £78m. They plan to work 6m hours and total labour costs for the year are £26m. Which of the following can be a suitable absorption rate for the production overhead?   i. £4 per hour ii.  £13 per hour iii.  £3 per labour cost iv.  £13 per labour cost Select one: a. i and iii b. i and iv c. ii and iii d. ii and iv
Based on a predicted level of production and sales of 22,000 units, a company anticipates total variable costs of $99,000, fixed costs of $30,000, and operating income of $36,000. Based on this information, the budgeted amount of variable costs for 20,000 units would be:
Requirement 1. Calculate the total variable costs of producing 2, 3, and 4 units assuming that Northern Defense uses an 85% incremental unit-time learning model as a basis for predicting manufacturing labor-hours. Begin by calculating the cumulative total time in labor-hours using the incremental unit-time learning model. (Round the individual unit time for Xth unit to the nearest whole number) Individual unit time for Cumulative total time: Cumulative number of units 1 2 Xth unit: Labor-hours Labor-hours 3 Data table Direct materials cost Direct manufacturing labor time for first unit Learning curve for manufacturing labor time per radar system Variable manufacturing overhead costs $ 83,000 per unit of RS-32 Direct manufacturing labor costs "Using the formula for an 85% learning curve, b= In 0.85 In 2 -0.162519 0.693147 3,900 direct manufacturing labor-hours 85% incremental unit-time" 20 per direct manufacturing labor-hour 12 per direct manufacturing labor-hour =-0.234465
Northern Defense manufactures radar systems. It has just completed the manufacture of its first newly designed system, RS-32. Manufacturing data for the RS-32 follow: (Click icon to view data) Requirement Calculate the total variable costs of producing 2, 4, and 8 units. Begin by calculating the cumulative total time in labor-hours using the cumulative average-time learning model. (Round the cumulative average time per unit to the nearest whole number.) Cumulative number of Cumulative average time units 2 per unit: Labor-hours Cumulative total time: Labor-hours 4 8 Data table Direct material cost $ 84,000 per unit of RS-32 Direct manufacturing labor time for first unit Learning curve for manufacturing labor time per radar system 3,800 direct manufacturing labor-hours 85% cumulative average time² Direct manufacturing labor cost $ 23 per direct manufacturing labor-hour Variable manufacturing overhead cost $ 17 per direct manufacturing labor-hour Using the formula for an 85% learning…