Case B Working

Case B Working - Element $ Amount per unit Material 100 Direct labor 17 Overhead 25 Total costs 142 Profit(25 36 Total per unit 178(5 hours at $10

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Case B Element $ Amount per unit Material 100 Direct labor 50 Overhead 75 Total costs 225 Profit (25%) 56 Total per unit 281 Estimation Method first 100 units 5 200 units 3.75 400 units 2.81 800 units 2.11 Total direct hours for 800 units 1687.5 500 hours required for first 100 units 500 So additional 700 units require 1187.5 Total direct labor cost for 700 units 11880 Average labor cost per unit 16.97 What Buyer should pay for an additional 700 pieces
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Unformatted text preview: Element $ Amount per unit Material 100 Direct labor 17 Overhead 25 Total costs 142 Profit (25%) 36 Total per unit 178 (5 hours at $10 per hour) (150% of direct labor) hours average per unit hours average per unit hours average per unit hours average per unit or 1688 hours or 1188 hours (150% of direct labor)...
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This note was uploaded on 07/02/2011 for the course MGSC 487 taught by Professor Jayaram during the Spring '10 term at South Carolina.

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Case B Working - Element $ Amount per unit Material 100 Direct labor 17 Overhead 25 Total costs 142 Profit(25 36 Total per unit 178(5 hours at $10

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