XYZ Co has observed that 80% learning curve ratio applies to all labour related costs each time a new model enters production. It is anticipated that 640 units will be manufactured during 2020. Direct labour cost for the first lot of 10 units amounts to RO 14,000 at RO 14 per hour. Variable overhead cost is assigned to products at the rate of RO 3 per direct labour hour. You are required to determine average labour cost of first 80 units. a. OMR 918.54 b. OMR 1134 c. OMR 10200.6 d. None of the given options
XYZ Co has observed that 80% learning curve ratio applies to all labour related costs each time a new model enters production. It is anticipated that 640 units will be manufactured during 2020. Direct labour cost for the first lot of 10 units amounts to RO 14,000 at RO 14 per hour. Variable overhead cost is assigned to products at the rate of RO 3 per direct labour hour. You are required to determine average labour cost of first 80 units. a. OMR 918.54 b. OMR 1134 c. OMR 10200.6 d. None of the given options
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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6-XYZ Co has observed that 80% learning curve ratio applies to all labour related costs each time a new model enters production. It is anticipated that 640 units will be manufactured during 2020. Direct labour cost for the first lot of 10 units amounts to RO 14,000 at RO 14 per hour. Variable overhead cost is assigned to products at the rate of RO 3 per direct labour hour. You are required to determine average labour cost of first 80 units.
a. OMR 918.54
b. OMR 1134
c. OMR 10200.6
d. None of the given options
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