In: Accounting
Cost Accounting
Refer to the table below. Assume that the company involved now
finds that the...
Cost Accounting
Refer to the table below. Assume that the company involved now
finds that the learning rate is 90 percent. The 90 percent learning
rate coefficient is -0.152003; that is b = -0.152003 in
the formula Y = aXb.
Required:
Using the formula, Y =
aXb, compute the labor time and costs
for 5, 6, and 7 units. (Round your intermediate
calculations (except for coefficient) and final answers to 2
decimal places.
|
|
Unit Produced (X) |
Labor Time Required to Produce the Xth
Unit (i.e., the last single unit produced)1 (Y) |
Cumulative Total Time in Labor-
Hours(2) |
Total Cost(3) |
Average Cost per Unit(4) |
1 |
100.00 |
100.00 |
$5,000.00 |
$5,000.00 |
2 |
90.00 |
190.00 |
9,500.00 |
4,750.00 |
3 |
84.62 |
274.62 |
13,731.03 |
4,577.01 |
4 |
81.00 |
355.62 |
17,781.03 |
4,445.26 |
5 |
|
|
|
|
6 |
|
|
|
|
7 |
|
|
|
|
8 |
72.90 |
657.37 |
32,868.63 |
4,108.58 |
|