Question

In: Accounting

Find the labor cost to produce 40 cellphones if the time needed to produce the first...

Find the labor cost to produce 40 cellphones if the time needed to produce the first cell phone is 120 hours and learning rate is 90%. Assume the labor wage is $11/hour. please work it in excel

Solutions

Expert Solution

Calculation of total hours required to manufacture 40 cell phones:

Units

Average Time
Per Unit (Previous unit time *90%)

Total Time
(Average time per unit*Number of units)

1

120.00

120.00

2

108.00

216.00

3

97.20

291.60

4

87.48

349.92

5

78.73

393.66

6

70.86

425.15

7

63.77

446.41

8

57.40

459.17

9

51.66

464.90

10

46.49

464.90

11

41.84

460.26

12

37.66

451.89

13

33.89

440.59

14

30.50

427.03

15

27.45

411.78

16

24.71

395.31

17

22.24

378.02

18

20.01

360.23

19

18.01

342.22

20

16.21

324.20

21

14.59

306.37

22

13.13

288.87

23

11.82

271.80

24

10.64

255.25

25

9.57

239.30

26

8.61

223.98

27

7.75

209.34

28

6.98

195.38

29

6.28

182.12

30

5.65

169.56

31

5.09

157.70

32

4.58

146.50

33

4.12

135.97

34

3.71

126.08

35

3.34

116.81

36

3.00

108.14

37

2.70

100.03

38

2.43

92.46

39

2.19

85.40

40

1.97

78.83

Labour wage rate per hour = $11

Total labor hours required to manufacture 40 cell phones = 78.83 hours

Labor cost = $11*78.83 hours = $867.13

So, labor cost to manufacture 40 cell phones = $867.13


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