You have been asked to estimate the per unit selling price of a new line of clothing. Pertinent data are given as follows. Past experience has shown that an 80% learning curve applies to the labor required for producing these items. The time to complete the first item has been estimated to be 1.76 hours. Use the estimated time to complete the 50th item as your standard time for the purpose of estimating the unit selling price. Direct labor rate:$15.00 per hourProduction material: $375 per 100 itemsFactory overhead:Packing costs:Desired profit:125% of direct labor75% of direct labor20% of total manufacturing costcost The engineer develops the cost template provided below:Unit ElementsFactor EstimatesRowDemanufacturing Cost Elements UnitsCost/Unit Factor of RowTotalA: Factory laborB: Quality costs Training24.5 hrs$12.00/hr$294.0010%A$29.40C: Total labor$323.40D: Factory overhead Setup costsE: Transportation cost150%$485.1020%$64.68F:Total direct charge$550.08G: Facility rentalH: Total demanufacturing cost$873.48Quantity Lot sizeDemanufacturing cost per unitOutside cost per unitI:200J:$4.37$11.70

The time required to produce a unit is calculated as, Zu=Kun=1.7650log0.8log2=1.7650-0.322=0.5 hrs…

Answered: Direct labor rate: $15.00 per hour…

Structural Analysis

6th Edition

ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

Problem 1P

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You have been asked to estimate the per unit selling price of a new line of clothing. Pertinent data are given as follows. Past experience has shown that an 80% learning curve applies to the labor required for producing these items. The time to complete the first item has been estimated to be 1.76 hours. Use the estimated time to complete the 50^th item as your standard time for the purpose of estimating the unit selling price.

Direct labor rate:
$15.00 per hour
Production material: $375 per 100 items
Factory overhead:
Packing costs:
Desired profit:
125% of direct labor
75% of direct labor
20% of total manufacturing cost
cost

The engineer develops the cost template provided below:
Unit Elements
Factor Estimates
Row
Demanufacturing Cost Elements Units
Cost/Unit Factor of Row
Total
A: Factory labor
B: Quality costs Training
24.5 hrs
$12.00/hr
$294.00
10%
A
$29.40
C: Total labor
$323.40
D: Factory overhead Setup costs
E: Transportation cost
150%
$485.10
20%
$64.68
F:
Total direct charge
$550.08
G: Facility rental
H: Total demanufacturing cost
$873.48
Quantity Lot size
Demanufacturing cost per unit
Outside cost per unit
I:
200
J:
$4.37
$11.70

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