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What the cumulative average worker-hours per unit

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Reference no: EM132576198

Spin Inc., manufactures complex units of motorboats. Fabricating these units require a high degree of technical skill. However, employees have an opportunity to learn how to produce the units more effectively. In estimating direct labor-hours, a 70% learning curve can be used. Completing one prototype unit required 1,200 labor hours at a cost of P18,000.

Question 1. The cumulative average worker-hours per unit for a total of 2 units is

Question 2. The cumulative average worker-hours unit for a total of 8 units is

Question 3. The estimated direct labor cost for an order of seven additional units is

Reference no: EM132576198

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