Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 direct labor 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 time 1,120 pistons are produced. Carr's manufacturing costs for pistons are presented below. Direct labor $15.00 per direct labor hour Variable overhead 15.00 per direct labor hour per direct labor hour Materials per unit Carr 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 units produced by Truck. Fixed overhead 20.00 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 Choice . 134.80. 141.38. 144.64. 147.91. 159.73. . 6.00 .

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 direct labor 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 time 1,120 pistons are produced. Carr's manufacturing costs for pistons are presented below. Direct labor $15.00 per direct labor hour Variable overhead 15.00 per direct labor hour per direct labor hour Materials per unit Carr 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 units produced by Truck. Fixed overhead 20.00 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 Choice . 134.80. 141.38. 144.64. 147.91. 159.73. . 6.00 .

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please do not give solution in image format thanku 

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 direct labor 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 time 1,120 pistons are produced. Carr's manufacturing costs for pistons are presented below. Direct labor $15.00 per direct labor hour per direct labor hour per direct labor hour per unit Carr 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 units produced by Truck. Variable overhead 15.00 Fixed overhead . Materials . 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 Choice 20.00 134.80. 141.38. 144.64. 147.91. 159.73. 6.00
Transcribed Image Text: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 direct labor 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 time 1,120 pistons are produced. Carr's manufacturing costs for pistons are presented below. Direct labor $15.00 per direct labor hour per direct labor hour per direct labor hour per unit Carr 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 units produced by Truck. Variable overhead 15.00 Fixed overhead . Materials . 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 Choice 20.00 134.80. 141.38. 144.64. 147.91. 159.73. 6.00
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost estimation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS