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Barbados Soy Products produces equipment used in the Agricultural industry. The advent of organic farming has inspired the team of designers to develop a specialized
Barbados Soy Products produces equipment used in the Agricultural industry. The advent of organic farming has inspired the team of designers to develop a specialized greenhouse system which utilizes hydroponic systems for farming communities. It has just completed the prototype for a new model. The information for the green house system is shown below. Direct material cost per unit $21,000 Direct labour time for the assembly of first unit in hours 120 Direct labour cost per hour $70 Learning effect for design hours per unit 90% Variable manufacturing overhead 50% of direct labour cost Fixed overhead cost per system $2,250 (A 90% learning curve implies that b = -0.1520) The first unit is kept on display. A finished system carries a 10% mark up on variable cost. It is believed that the learning effect is valid only for the first 30 units. All units thereafter take the same time per unit as the 30th unit. The cumulative average design labour hours for an initial order of 25 units. Provide the details and workings in the following table. Eile believed that the learning effect is valid only for the first 30 units. All units thereafter take the same time per unit as the 30th unit. The cumulative average design labour hours for an $ initial order of 25 units. Provide the details and workings in the following table. Details $ Amount Total
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