Labor schedule with iearning curve costs Botega Company has just completed the first 30 units of a
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Labor schedule with iearning curve costs Botega Company has just completed the first 30 units of a small single-engine airplane of a new design. The average labor cost for the 30 airplanes was $18,000 per unit, with a total labor cost of $540,000. The company plans to build a total of 240 airplanes in the current year. With complex products of this kind, the company usually experi- ences an 85 percent learning curve.
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REQUIRED a. Prepare a schedule of labor costs similar to Figure 25-3 in the text. b. Compute the total cost of producing the first 100 airplanes.
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