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chapter 10 learning curve worksheet Banana Corp. manufactures CD players for old folks who still have a lot of CDs they like. It has
chapter 10 learning curve worksheet Banana Corp. manufactures CD players for old folks who still have a lot of CDs they like. It has just completed manufacture of its first unit. Manufacturing data follow: Direct material cost Direct manufacturing labor for first unit Leaming curve for mfr labor time per CD player Direct manufacturing labor cost Variable manufacturing overhead cost $43 per CD player 2 direct manufacturing labor-hours 80% cumulative average time $30 per direct mfr labor-hour $12 per direct mfr labor-hour using the formula for an 80% learning curve, b = In. 80 = -0.223144 = -0.321923 In 2 0.693147 1. Calculate total variable costs of producing the first eight (8) units. (You will want to round hours to three decimal places here to get a meaningful answer.) 2. Assume same information, except Banana Corp. decides to use an 80% incremental unit time learning curve model (b = -0.321923) to predict direct manufacturing labor hours. Then what would be the total variable cost of producing the first eight (8) units?
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