1. Your company is making experimental turbochargers for a new design of high-powered farm tractors. The production schedule for these new components is contained in the table below. Month Turbochargers 1 2 3 4 5 7 6 7 10 5 The first turbocharger, a trial unit, took 1.000 hours to produce. Based on your experience with similar products, the learning factor is 85%. You have 20 employees, and each employee works 160 hours per month. What is the average number of working hours is required per month?

1. Your company is making experimental turbochargers for a new design of high-powered farm tractors. The production schedule for these new components is contained in the table below. Month Turbochargers 1 2 3 4 5 7 6 7 10 5 The first turbocharger, a trial unit, took 1.000 hours to produce. Based on your experience with similar products, the learning factor is 85%. You have 20 employees, and each employee works 160 hours per month. What is the average number of working hours is required per month?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 15E: Ethical Behavior Consider the following scenario between Dave, a printer, and Steve, an assistant in...

See similar textbooks

Similar questions

Eric Krassow's firm is about to bid on a new radar system. Although the product uses new technology, Krassow believes that a learning rate of 75% is appropriate. The first unit is expected to take 700 hours, and the contract is for 40 units. What is the total amount of hours to build the 40 units?
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?)
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:
Zarget Ltd produce hand held medical equipment and are developing a new product to bring to the market. The prototype took 5 labour hours to produce at a cost of £15 per labour hour. Other variable costs amount to £45 per unit. It is estimated that an 80% learning curve will apply and that steady state will be reached after 100 units have been produced. They expect to be able to produce and sell 300 units in the next 12 months. (b=-0.3219) Required: Calculate the total variable cost of producing 300 units taking into consideration the learning curve effect.
Your firm designs training materials for computer training classes, and you have just received a request to bid on a contract to produce a complete set of training manuals for an 8-session class. From previous experience, you know that your firm follows a 90% learning rate. For this contract, it appears that the effort will be substantial, running 400 hours for the first session. Your firm has an average cost of labor of $60/hour and the overhead is expected to run a fixed $1000 per session. The customer will pay you a flat fixed rate per session (Per Session Price.) If your profit markup is 12%, what will be the Total Price, the Per Session Price, and at what session will you break even? Answer the following four questions: What is the Total Price? This is what you would charge the customer so that you can have your profit markup of 10% over all of your costs. To calculate this, first figure out your cost per each session, add them up, and then add your profit. What is the Per…
Please send me answer of this question within 10 min i will give you like sure.send me typed answer only please
The following scenario relates to 5 questions. Bear Co has developed a new model of television. The estimated labour time for the first unit is 12 hours but a learning curve of 75% is expected to apply for the first eight units produced Note: The learning index for a 75% learning curve is-0-415. Overhead production costs must be estimated based on a previous model, the Leonardo, that was made by Bear Co. Production quantities and total overhead costs for the last four months of production of the Leonardo were as follows: Month Output Total overhead cost (units) $ September 1,800 278,200 October 2,000 310,000 November 1,700 252,900 December 1,000 200,000 The first phase of production has now been completed for the new television. The first unit actually took 12-5 hours to make and the total time for the first eight units was 34-3 hours, at which point the learning effect came to an end. What is the actual learning rate, and did the labour force learn more quickly or less quickly than…
The following scenario relates to 5 questions. Bear Co has developed a new model of television. The estimated labour time for the first unit is 12 hours but a learning curve of 75% is expected to apply for the first eight units produced Note: The learning index for a 75% learning curve is -0.415. Overhead production costs must be estimated based on a previous model, the Leonardo, that was made by Bear Co. Production quantities and total overhead costs for the last four months of production of the Leonardo were as follows: Month Output Total overhead cost (units) $ September 1,800 278,200 October 2,000 310,000 November 1,700 252,900 December 200,000 1,000 You have been asked to estimate the variable overhead cost per unit of the new television by assuming that it will be the same as for the Leonardo, using the information provided for the last four months of its manufacture, and applying a 6% inflation rate. What is the variable cost per unit using the high-low method (to two decimal…
The Briggs and Stratton Commercial Division designs and manufactures small engines for golf turf maintenance equipment. A robotics-based testing system will ensure that their new signature guarantee program entitled “Always Insta-Start” does indeed work for every engine produced. Compare the two systems at MARR = 10% per year. Solve using (a) tabulated factors, and (b) single-cell spreadsheet functions.
1. You have just graduated from the BTEC program of UTAS and one of your favorite courses was "Entrepreneurship." In fact, you enjoyed it so much you have decided you want to "be your own boss." Your grandfather has given you OMR 130000 to do whatever you wish. He also gives you 10000 in the second year. You have decided that you would like to purchase an old paper factory using all the money and launch a new tissue paper product. The problem is that you have never been one to stay with any project for too long, so you figure that your time frame is 5 years. After 5 years you will go on to something else. The salvage value at the end of the 5th year is OMR 7000. Cash Outflow Cash Inflow Year (OMR) (OMR) 130000 1 10000 20000 2 30000 3 60000 4 80000 20000 It is funded by both debt and equity and currently has a weighted cost of capital (Discount rate) of 8%. Answer the following questions: - A. Calculate the Internal rate of return and net present value for the above project. Critically…
1. You have just graduated from the BTEC program of UTAS and one of your favorite courses was “Entrepreneurship.” In fact, you enjoyed it so much you have decided you want to “be your own boss.” Your grandfather has given you OMR 130000 to do whatever you wish. He also gives you 10000 in the second year. You have decided that you would like to purchase an old paper factory using all the money and launch a new tissue paper product. The problem is that you have never been one to stay with any project for too long, so you figure that your time frame is 5 years. After 5 years you will go on to something else. The salvage value at the end of the 5th year is OMR 7000. Year Cash Outflow (OMR) Cash Inflow (OMR) 0 130000 - 1 10000 20000 2 - 30000 3 - 60000 4 - 80000 5 - 20000 It is funded by both debt and equity and currently has a weighted cost of capital (Discount rate) of 8%. Answer the following questions: - A. Calculate the Internal rate of return and net…