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Question: 1) Given the following unit learning curve equation, which statement is correct?
Y = 118 (X)-0.286304
The slope equals 1 - 0.286304 = .7137 or 71.37%
118 is the theoretical cost of the first unit
118 represents the unit you are estimating
Y represents the cost of the first unit
2) The first unit required 9800 hours to manufacture. The company expects to experience an 85% unit learning curve. Estimate the cost of the 20th unit. (Round intermediate calculations to 4 decimal places)
23112 hours
5408 hours
4855 hours
4155 hours
Prepare the journal entries to record the transactions of Panorama Ltd up to and including that which took place on 16 June 2012. Show all workings.
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