Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. v. the mad hatter is a vancouver manufacturer of h

v. The Mad Hatter is a Vancouver manufacturer of hats. In March the company received...

80.2K

Verified Solution

Question

Accounting

v. The Mad Hatter is a Vancouver manufacturer of hats. In March the company received an order to produce 800 specialty hats to be worn during the opening ceremonies of the winter Olympics. The Mad Hatter estimates that 100 of these hats can be produced in a total of 25 direct labour hours. Costs associated with this order are, direct materials at $12 per hat, direct labour at $25 per hour, variable manufacturing overhead at $5 per direct labour hour, and fixed manufacturing overhead of $8,000. The company expects an 80% learning curve. The Index of Learning =-.3219
Required:
Without the learning curve, how many direct labour hours will it take to manufacture the hats?
Using the cumulative average time learning model, how many direct labour hours will it take to manufacture the hats?
Using the incremental unit time learning model, how many direct labour hours will it take to manufacture the hats?
If The Mad Hatter plans to set the selling price for the new hat at 200% of production costs, what would be the selling price per hat under both learning curve models?
image

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!
Become a Member

Other questions asked by students

Medical Sciences
1.2K views

As a massage therapist what are some of your respiratory observations of your client and how can...

Physics
1.2K views

1. (a) Use the Bohr model to find the radius and energy of the first excited...

Physics
1.2K views

What is Earth's Specific Mechanical Energy in its orbit around the Sun? Here are some properties you...

Advance Math
1.2K views

Need the detailed calculation process about why at the same BER condition, BPSK is 3dB more...

General Management
1.2K views

In what ways do you believe that CEOs and top management benefit from the guidance/expertise of...

Calculus
1.2K views

ind the area of the shaded region AY 2 1 1 4 y x 2...

Algebra
1.2K views

1 point Subtract 5r 2y 2r 3y 3r 5y 3r 5y 7r 5y 3r y

Accounting
1.2K views

A company originally issued 11,000 shares of $10 par value common stock at $12 per...

Accounting
1.2K views

Shannon, Inc., has two divisions. One produces and sells paper party supplies (napkins, paper plates,...

Accounting
1.2K views

What are some of the reasons why company executives manipulate earnings? Give other examples of...

Accounting
1.2K views

ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first...

Finance
1.2K views

Bruin, Inc., has identified the following two mutually exclusive projects Year Cash Flow (A) -$29,400...