Learning Curve Sharon Glessing, controller for Janson Company, has noticed that the company faces a 80 percent learning rate for its specialty design line. In planning the cost of the latest design, Sharon assumed that the first set of units would take 1,200 direct labor hours. She decided to use this information in budgeting for the cost of the total project, which would involve the manufacture of 16 sets. Direct labor is paid $40 per hour. Required: 1. Complete the table below showing results by row for total production of: one unit, two units, four units, eight units, and sixteen units. (Round hour answers to two significant digits.) (Round Cumulative Total Time answers to the nearest whole number.) Cumulative Number of Units 1 Cumulative Average Time per Unit in Hours 1,200 ✓ 960 ✓ 768 ✔ 614.4 ✔ 492 X 2. What is the total labor cost if Janson Company makes eight sets? Sixteen sets? (Use the rounded answers in the subsequent computations). Total labor cost for eight sets Total labor cost for sixteen sets Cumulative Total Time: Labor Hours 2 4 8 16 1,200 1,920 ✔ 3,072 ✔ 4,915 ✔

Learning Curve Sharon Glessing, controller for Janson Company, has noticed that the company faces a 80 percent learning rate for its specialty design line. In planning the cost of the latest design, Sharon assumed that the first set of units would take 1,200 direct labor hours. She decided to use this information in budgeting for the cost of the total project, which would involve the manufacture of 16 sets. Direct labor is paid $40 per hour. Required: 1. Complete the table below showing results by row for total production of: one unit, two units, four units, eight units, and sixteen units. (Round hour answers to two significant digits.) (Round Cumulative Total Time answers to the nearest whole number.) Cumulative Number of Units 1 Cumulative Average Time per Unit in Hours 1,200 ✓ 960 ✓ 768 ✔ 614.4 ✔ 492 X 2. What is the total labor cost if Janson Company makes eight sets? Sixteen sets? (Use the rounded answers in the subsequent computations). Total labor cost for eight sets Total labor cost for sixteen sets Cumulative Total Time: Labor Hours 2 4 8 16 1,200 1,920 ✔ 3,072 ✔ 4,915 ✔

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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