A staff assistant at NUBD Corporation recently determined that the first four units completed in a new manufacturing process took 1,000 hours to complete, or an average of 250 hours per unit. The assistant also found that when the cumulative output produced doubles, the averag labor time declines by 25%. On the basis of this information, how many total hours would NUBD use if it produces 16 units? * ,

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 28E: Assume that the inspection activity has an expected cost of 120,000. Expected direct labor hours are...
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A staff assistant at NUBD Corporation recently determined that the first four units completed
in a new manufacturing process took 1,000 hours to complete, or an average of 250 hours per
unit. The assistant also found that when the cumulative output produced doubles, the average
labor time declines by 25%. On the basis of this information, how many total hours would
NUBD use if it produces 16 units? * ,
Do not use units. Sample format: 1,111
Transcribed Image Text:A staff assistant at NUBD Corporation recently determined that the first four units completed in a new manufacturing process took 1,000 hours to complete, or an average of 250 hours per unit. The assistant also found that when the cumulative output produced doubles, the average labor time declines by 25%. On the basis of this information, how many total hours would NUBD use if it produces 16 units? * , Do not use units. Sample format: 1,111
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