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 expected? ✔Select... The learning rate was 70% and the labour force learned less quickly The learning rate was 30% and the labour force learned less quickly The learning rate was 70% and the labour force learned more quickly The learning rate was 30% and the labour force learned more quickly

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
expected?
Select...
The learning rate was 70% and the labour force learned less quickly
The learning rate was 30% and the labour force learned less quickly
The learning rate was 70% and the labour force learned more quickly
The learning rate was 30% and the labour force learned more quickly
Transcribed Image Text: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 expected? Select... The learning rate was 70% and the labour force learned less quickly The learning rate was 30% and the labour force learned less quickly The learning rate was 70% and the labour force learned more quickly The learning rate was 30% and the labour force learned more quickly
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