Cost Accounting.
fx 660 E B C D Incremental Unit Time Learning Method 1 $ Kaladala Industries has been contracted to construct 3Z custom order tiki bars by Tilton Hotels for use poolside at the company's resorts. Kaladala expects a fairly flat learning curve but still believes that the efficiency of the direct laborers will increase as each subsequent unit is completed. Information about Kaladala's expected learning curve, labor costs, and expected production times is listed below. Use this information to prepare an time learning method table using the incremental method in order to determine Kaladala's expected total labor cost for the 2 production of these tiki bars. 3 Leaming Curve 96.60% 4 Average Labor Cost per Hour $ 26.50 5 Hours to Produce First Unit (a) 24 6 Requirement 1: Determine the slope of the exponential function 7 Natural Logarithm (in) of Learning Curve 8 Divide by: Natural Logarithm of 2 9 Slope (b) 10 Requirement 2: Prepare an incremental Time Learning Model Table 11 y=a*x^b 12 Cumulative Individual Unit Number of Units Time for Xth unit Cumulative Total Cumulative Total Average Labor 13 (x) Labor Hours Labor Cost Cost per Unit 14 1 15 2 16 3 17 4 18 5 19 20 7 21 8 22 9 23 10 24 Incremental Time 6 11 660 D B BUT UN-> 5 12 13 14 7 B 15 3 16 17 1 2 18 19 3 20 21 4 5 22 6 7 8 23 24 25 9 26 27 28 29 0 11 12 3 14 15 30 31 32 Incremental Time 560 E D C A B 1 2. 28 29 3 30 4 per unit 31 5 32 6 Requirement Three: Determine Gross Profit Kaladala has set the following standards for direct materials, overhead, and sales prices for the 37 tiki bars being producted for Tilton: 18 Direct Materials Cost $ 3.25 per pound 19 Direct Materials Usage 320.50 pounds per unit 50 VOH allocation rate $ 14.00 per DL hour 51 FOH allocation rate $ 10.00 per DL hour 52 Sales Price $ 2,999.95 Determine Kaladala's expected gross profit (and gross profit percentage) if: a) the company 53 produces all 32 units for Tilton, b) the company only produces 16 units instead. 32 Units Produced 16 Units Produced 54 & Sold & Sold 55 Sales Revenue 56 Cost of Goods Sold: 57 Direct Materials 58 Direct Labor 59 Variable Overhead Allocated 60 Fixed Overhead Allocated 61 Total Cost of Goods Sold 62 Gross Profit 63 64 Gross Profit Percentage 65 66 Gross Profit/ Sales Revenue 67 68 Incremental Time fx 660 E B C D Incremental Unit Time Learning Method 1 $ Kaladala Industries has been contracted to construct 3Z custom order tiki bars by Tilton Hotels for use poolside at the company's resorts. Kaladala expects a fairly flat learning curve but still believes that the efficiency of the direct laborers will increase as each subsequent unit is completed. Information about Kaladala's expected learning curve, labor costs, and expected production times is listed below. Use this information to prepare an time learning method table using the incremental method in order to determine Kaladala's expected total labor cost for the 2 production of these tiki bars. 3 Leaming Curve 96.60% 4 Average Labor Cost per Hour $ 26.50 5 Hours to Produce First Unit (a) 24 6 Requirement 1: Determine the slope of the exponential function 7 Natural Logarithm (in) of Learning Curve 8 Divide by: Natural Logarithm of 2 9 Slope (b) 10 Requirement 2: Prepare an incremental Time Learning Model Table 11 y=a*x^b 12 Cumulative Individual Unit Number of Units Time for Xth unit Cumulative Total Cumulative Total Average Labor 13 (x) Labor Hours Labor Cost Cost per Unit 14 1 15 2 16 3 17 4 18 5 19 20 7 21 8 22 9 23 10 24 Incremental Time 6 11 660 D B BUT UN-> 5 12 13 14 7 B 15 3 16 17 1 2 18 19 3 20 21 4 5 22 6 7 8 23 24 25 9 26 27 28 29 0 11 12 3 14 15 30 31 32 Incremental Time 560 E D C A B 1 2. 28 29 3 30 4 per unit 31 5 32 6 Requirement Three: Determine Gross Profit Kaladala has set the following standards for direct materials, overhead, and sales prices for the 37 tiki bars being producted for Tilton: 18 Direct Materials Cost $ 3.25 per pound 19 Direct Materials Usage 320.50 pounds per unit 50 VOH allocation rate $ 14.00 per DL hour 51 FOH allocation rate $ 10.00 per DL hour 52 Sales Price $ 2,999.95 Determine Kaladala's expected gross profit (and gross profit percentage) if: a) the company 53 produces all 32 units for Tilton, b) the company only produces 16 units instead. 32 Units Produced 16 Units Produced 54 & Sold & Sold 55 Sales Revenue 56 Cost of Goods Sold: 57 Direct Materials 58 Direct Labor 59 Variable Overhead Allocated 60 Fixed Overhead Allocated 61 Total Cost of Goods Sold 62 Gross Profit 63 64 Gross Profit Percentage 65 66 Gross Profit/ Sales Revenue 67 68 Incremental Time
