Question
A lot of 20 units is to be produced. Labour cost is $8.50 per hour. Setup cost is $50 and material cost is $20 per
A lot of 20 units is to be produced. Labour cost is $8.50 per hour. Setup cost is $50 and material
cost is $20 per unit. The learning percentage is expected to be 90 percent. Overhead is charged
at the rate of 50 percent of total labour, material, and setup cost. Determine the average unit
cost for the lot, given that the first unit took 5 hours to complete
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Supply Chain Logistics Management
Authors: Donald Bowersox, David Closs, M. Bixby Cooper
4th edition
78024056, 978-0078024054
