Question

Suad Alwan, the purchasing agent for Dubai Airlines, has determined that the second plane took 20,000 hours to produce. Using an 85% learning curve and a $30-per-hour labor charge, he wants to determine the cost of the four additional planes.

Time required for the fourth unit = 17000 hours (round your response to the nearest whole number).

Cost of the fourth unit = 510,000 dollars (round your response to the nearest whole number).

Time required for the fifth unit = ? hours (round your response to the nearest whole number).

Answer #1

Suad? Alwan, the purchasing agent for Dubai? Airlines, has found
that the fifth plane it needed from a Brazilian manufacturer took
that firm 16,000 hours to produce. Using an 80?% learning curve and
a $20?-per-hour labor? charge, Suad wishes to calculate what twelve
additional planes should cost.??
Time required for the twelfth unit? =
cost for the 12th unit=
Time required for the thirteenth unit? =
cost for thirteenth unit=
Time required for the fourteen unit=
cost of the fourteenth...

It took a Wisconsin shipyard 125,000 labor-hours to produce the
first of several tugboats that you expect to purchase for your
shipping company, Great Lakes, Inc. Boats 2 and 3 have been
produced by the company with a learning factor of 85%. At $40 per
hour, what should you, as purchasing agent, expect to pay for the
fourth unit?

It takes Boeing 29,454 hours to produce the sixth 787 jet. The
learning factor is 85?%. Time required for the production of the
tenth ?787: (round your response to the nearest
whole? number).

United Research Associates (URA) had received a contract to
produce two units of a new cruise missile guidance control. The
first unit took 5,000 hours to complete and cost $30,000 in
materials and equipment usage. The second took 4,500 hours and cost
$24,000 in materials and equipment usage. Labor cost is charged at
$20 per hour. The company expects “learning” to occur relative to
labor and also relative to the pricing of materials and
equipment.
The prime contractor has now...

For the next two problems (5. and 6.) you may refer to
the below chart of learning curve coefficients and multipliers or
you can calculate the coefficients using the formulas discussed in
the lectures. You will arrive at the same answer regardless of
which path you choose.
70%
75%
80%
85%
Unit
Unit
Time
Total
Time
Unit
Time
Total
Time
Unit
Time
Total
Time
Unit
Time
Total
Time
5
.437
3.195
.513
3.459
.596
3.738
.686
4.031
10
.306
4.932...

Problem 4-17
Frandec Company manufactures, assembles, and rebuilds material
handling equipment used in warehouses and distribution centers. One
product, called a Liftmaster, is assembled from four components: a
frame, a motor, two supports, and a metal strap. Frandec’s
production schedule calls for 5000 Liftmasters to be made next
month. Frandec purchases the motors from an outside supplier, but
the frames, supports, and straps may be either manufactured by the
company or purchased from an outside supplier. Manufacturing and
purchase costs...

Woodruff Company is currently producing a snowmobile that uses
five specialized parts. Engineering has proposed replacing these
specialized parts with commodity parts, which will cost less and
can be purchased in larger order quantities. Current activity
capacity and demand (with specialized parts required) and expected
activity demand (with only commodity parts required) are
provided.
Activities
Activity
Driver
Activity
Capacity
Current Activity
Demand
Expected Activity
Demand
Material usage
Number of parts
220,000
220,000
220,000
Installing parts
Direct labor hours
32,000
32,000...

A manager must decide which type of machine to buy, A,
B, or C. Machine costs (per individual machine) are as
follows:
Machine Cost
A $40,000
B $30,000
C $80,000
Product forecasts and processing times on the machines
are as follows:
Product Annual Processing Time Per
Demand
A B C
1 18,000 4 2 1
2 20,000 1 5 3
3 20,000 5 6 6
4 16,000 4 6 3
a)Assume that only purchasing costs are being considered.
Compute the...

Direct Materials and Direct Labor Variance Analysis
Shasta Fixture Company manufactures faucets in a small
manufacturing facility. The faucets are made from brass.
Manufacturing has 30 employees. Each employee presently provides 35
hours of labor per week. Information about a production week is as
follows:
Standard wage per hour
$13.80
Standard labor time per unit
20 min.
Standard number of lbs. of brass
1.4 lbs.
Standard price per lb. of brass
$9.50
Actual price per lb. of brass
$9.75
Actual...

#11
Direct Materials and Direct Labor Variance Analysis
Abbeville Fixture Company manufactures units in a small
manufacturing facility. The units are made from brass.
Manufacturing has 40 employees. Each employee presently provides 40
hours of labor per week. Information about a production week is as
follows:
Standard wage per hour
$12.6
Standard labor time per unit
20 min.
Standard number of lbs. of brass
1.7 lbs.
Standard price per lb. of brass
$11
Actual price per lb. of brass
$11.25...

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