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Determine the unit selling price based on the estimated time

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Reference no: EM132487743

The costs of manufacturing horizontal fixed-mount barcode scanners are as follows:

Cost Elements   Cost Rate

Direct Labor $24.5 per hour

Material $380 per 70 units

Overhead costs 150% of direct labor

Question 1: The production has an 89% learning curve applied to labor required, and the time to complete the first unit was 37 direct labor hours. Determine the unit selling price based on the estimated time to complete the 100th unit, if the company wants a profit margin of 10% based on total manufacturing costs.

 

Reference no: EM132487743

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