Sharon Glessing, controller for Janson Company, has noticed that the company faces a 75 percent learning rate for its specialty design line. In planning the cost of the latest design, Sharon assumed that the first set of units would take 1,000 direct labor hours.

She decided to use this information in budgeting for the cost of the total project, which would involve the manufacture of 16 sets. Direct labor is paid $40 per hour.

Required:

1. Set up a table with columns showing: the cumulative number of units, cumulative average time per unit in hours, and cumulative total time in hours. Show results by row for total production of: one unit, two units, four units, eight units, and sixteen units. (Round hour answers to two significant digits.)

2. What is the total labor cost if Janson Company makes eight sets? Sixteen sets?

(Round your answers to the nearest dollar.)

3. Using the logarithmic function, set up a table with columns showing: the cumulative number of units, cumulative average time per unit in hours, cumulative total time in hours, and the time for the last unit. Show results by row for each of unit sets one through eight. (Round hour answers to two significant digits.) What is the direct labor cost for the eighth set?

LO1