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Cost Estimation Williams Equipment Inc. produced a pilot run of 20 units of a recently developed motor used in the finished products. The pilot run
Cost Estimation Williams Equipment Inc. produced a pilot run of 20 units of a recently developed motor used in the finished products. The pilot run required an average of 12 direct labor hours per motor. Williams has an 80% learning curve on the direct labor hours needed to produce new motors.
Required: Calculate the average direct labor hours per unit for the first 640 motors (including the pilot run) produced.
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