Marshall Co. produced a pilot run of forty units of a recently developed piston used...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Marshall Co. produced a pilot run of forty units of a recently developed piston used in one of its products. Marshall expected to produce and sell 1,900 units annually. The pilot run required an average of 0.55 direct labor hours per piston for 40 pistons. Marshall experienced an eighty percent learning curve on the direct labor hours needed to produce new pistons. Past experience indicated that learning tends to cease by the time 640 pistons are produced Marshall's manufacturing costs for pistons are presented below. Direct labor Variable overhead Fixed overhead Materials $11.00 per direct labor hour 10.00 per direct labor hour 20.00 per direct labor hour 3.00 per unit Marshall received a quote of $7 per unit from Kytel Machine Co. for the additional 1,860 needed pistons. Marshall frequently subcontracts this type of work and has always been satisfied with the quality of the units produced by Kytel. If the pistons are manufactured by Marshall Co., the total direct labor hours for the first 640 pistons (including the pilot run) produced is calculated to be (round to two digits after the decimal point)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
