Austen CoProduced a Pilot Run of Eighty Units of a Recently

question 65

Essay

Austen Co.produced a pilot run of eighty units of a recently developed part used in the finished products.Austen Co.expects to produce and sell 2,560 units annually.The pilot run required 40 direct labor hours for the eighty units, averaging 0.5 direct labor hours per unit.Austen experiences an eighty percent learning curve.
Required:
Calculate the average direct labor hours per unit for the first 2,560 units (including the pilot run) produced.

---

Definitions:

Swing-Arm Type

A design of suspension or support where a pivoting arm moves in an arc, commonly used in motorcycle rear suspensions.

Drive-On Type

Refers to equipment or mechanisms that are engaged or activated by driving onto or over them, often seen in automotive service equipment.

Four-Post Design

A type of lift or rack in automotive repair shops or garages featuring four posts that provide stability and support for a vehicle during maintenance or inspections.

VIN Number

The Vehicle Identification Number, a unique code used to identify individual motor vehicles.