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Kennerson Co

question 12

Essay

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.


Definitions:

Tort Law

Legal framework dealing with civil wrongs and remedies that are not based on contractual obligations.

Painted Surfaces

Any material or object coated with pigment or paint, often for protective or aesthetic purposes.

Exemption Clause

A contractual term that limits or excludes one party's liability for certain breaches or situations.

Sale of Goods Act

Legislation governing the sale of goods, providing rights to buyers and obligations to sellers, focusing on elements like product conformity and transactional fairness.

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