Jennerson Co

question 80

Multiple Choice

Jennerson Co.produced a pilot run of sixty units of a recently developed piston used in the finished products.The piston has a one-year life,and Jennerson expected to produce and sell 1,960 units annually.The pilot run required an average of.34 direct labor hours per piston for 60 pistons.The last piston in the pilot run required.23 direct labor hours.Jennerson experienced an eighty percent learning curve on the direct labor hours needed to produce new pistons.Past experience indicated that learning tends to cease by the time 960 parts are produced.Jennerson's manufacturing costs for pistons are presented below.
Jennerson received a quote of $9 per unit from Kytel Machine Co.for the additional 1,900 needed pistons.Jennerson frequently subcontracts this type of work and has always been satisfied with the quality of the units produced by Kytel.If the pistons are manufactured by Jennerson Co. ,the average direct labor hours per unit for the first 960 pistons (including the pilot run) produced is calculated to be:

• A)0.13926.
• B)0.1728.
• C)0.11141.
• D)0.13056.
• E)0.14797.

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Definitions:

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Guidelines or criteria used to make choices among alternatives.

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The magnitude of ethical concern perceived in a situation, influenced by factors like potential harm, social pressure, and probability of effect.

Vary Directly

A relationship where an increase in one variable corresponds with an increase in another variable.