Kennerson Co.produced a pilot run of seventy units of a recently developed part used in the finished products.Kennerson Co.expects to produce and sell 2,380 units annually.The pilot run required 20.16 direct labor hours for the seventy units,averaging .408 direct labor hours per piston.Kennerson experiences an eighty percent learning curve on the direct labor hours needed to produce new parts.
Required: Assuming the parts are manufactured by Kennerson Co. ,calculate the average direct labor hours per unit for the first 1,120 parts (including the pilot run)produced.

Question

Quizplus · Accepted Answer

The Answer of Kennerson Co.produced a pilot run of seventy units of a recently developed part used in the finished products.Kennerson Co.expects to produce and sell 2,380 units annually.The pilot run required 20.16 direct labor hours for the seventy units,averaging .408 direct labor hours per piston.Kennerson experiences an eighty percent learning curve on the direct labor hours needed to produce new parts.
Required: Assuming the parts are manufactured by Kennerson Co. ,calculate the average direct labor hours per unit for the first 1,120 parts (including the pilot run)produced.