The following information is provided to you: Direct labour needed to make first machine.                     1000 hours Learning curve.                                                                       80% Direct labour cost.                                                            R300 per hour Direct materials cost.                                         R180000 per machine  Fixed cost for machines at each cumulative production      R800000   Calculate the total direct hours required to manufacture four (4) machines. ( Indicate both average time per unit as well as cumulative time per unit for all the units) Calculate the total costs to manufacture 4 machines

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter3: Cost Behavior
Section: Chapter Questions
Problem 23E: Bordner Company manufactures HVAC (heating, ventilation, and air conditioning) systems for...
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The following information is provided to you:

 

Time taken to produce first 8 shock pads         640 hours

Time taken to produce first 16 shock pads        1200 hours

 

Calculate the learning curve

The following information is provided to you:

Direct labour needed to make first machine.                     1000 hours
Learning curve.                                                                       80%
Direct labour cost.                                                            R300 per hour
Direct materials cost.                                         R180000 per machine 


Fixed cost for machines at each cumulative production      R800000

 

Calculate the total direct hours required to manufacture four (4) machines. ( Indicate both average time per unit as well as cumulative time per unit for all the
units)

Calculate the total costs to manufacture 4 machines

 

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