order of [May 08] 7. A company has 10 direct workers, who work for 25 days a month of 8 hours per day. The estimated down time is 25% of the total available time. The company received an order for a new product. The first unit of the new product requires 40 direct labour hours to manufacture the product. The company expects 80% (index is -0.322) learning curve for this type of work. The company uses standard absorption costing and the cost data are as under:- Direct materials Direct labour Variable overhead Fixed overhead 60 per unit 6 per direct labour hour 1 per direct labour hour *7500 per month Required: Calculate the cost per unit of the first order of 30 units. If the company receives a repeat order for 20 units, what price will be quoted to yield a profit of 25% on selling price? [Nov 02]