Hammond Manufacturing Corporation has introduced a new product. It will be produced in a new department, Department 054.

The first unit will require 2 hours to produce. Direct labor cost is $4.50 per hour. mlo7 Required:

a Assuming a learning curve of 85%, compute the cumulative average direct labor hours per unit through the sixteenth unit.

b Compute the total cumulative direct labor cost and the cumulative average cost per unit.