In: Accounting
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
Calculation of total hours required to manufacture 40 cell phones: |
|||
Units |
Average Time |
Total Time |
|
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