You have been asked to estimate the selling price per unit of a new production lineof a certain product. Pertinent data are as follows:Direct labor rateProduction materialFactory overheadPacking costsDesired profitRO 15.00 per hourRO 375 per 100 items125% of direct labor25% of direct cost30% of total manufacturing costPast experience has shown that 83% learning curve applies to the labor required forproduction these items. The time to complete the first item has been estimated tobe 1.86 hours. Use the estimated time to complete the 50h item as your standardtime for the purpose of estimating the unit selling price.

Labor cost = RO 15/hour Production material cost = RO 375 per 100 units Time to produce first unit =…

You have been asked to estimate the selling price per unit of a new produc of a certain product. Pertinent data are as follows: Direct labor rate Production material Factory overhead Packing costs Desired profit RO 15.00 per hour RO 375 per 100 items 125% of direct labor 25% of direct cost 30% of total manufacturing co Past experience has shown that 83% learning curve applies to the labor requ production these items. The time to complete the first item has been estim

You have been asked to estimate the selling price per unit of a new produc of a certain product. Pertinent data are as follows: Direct labor rate Production material Factory overhead Packing costs Desired profit RO 15.00 per hour RO 375 per 100 items 125% of direct labor 25% of direct cost 30% of total manufacturing co Past experience has shown that 83% learning curve applies to the labor requ production these items. The time to complete the first item has been estim

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Concept explainers

Lean Production

The word lean refers to the “slim “that is used in manufacturing for the systematic designing that focuses on minimizing the waste in the manufacturing or production with the constant productivity of the operation. Lean manufacturing was rooted from Toyota Production system a Japanese manufacturing company that works on the approach of minimizing the non-value-added activities and making the production lean.

Question

You have been asked to estimate the selling price per unit of a new production line
of a certain product. Pertinent data are as follows:
Direct labor rate
Production material
Factory overhead
Packing costs
Desired profit
RO 15.00 per hour
RO 375 per 100 items
125% of direct labor
25% of direct cost
30% of total manufacturing cost
Past experience has shown that 83% learning curve applies to the labor required for
production these items. The time to complete the first item has been estimated to
be 1.86 hours. Use the estimated time to complete the 50h item as your standard
time for the purpose of estimating the unit selling price.

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