ARMAGHAN AHMED

https://www.facebook.com/groups/CMA4ALL.ARMAN/

LESSON NO 8

EDUCATION4ALL-ARMAN.BLOGSPOT.COM

LEARNING CURVE CALCULATIONS

Q28
AT 80% LEARNING CURVE
cost of 200 units
material(1500*4)
labor(640*4*8.5
var overhead(640*4*4)
total var cost
fixed overhead
less 50 unit cost
COST OF 150 UNITS
AT 70% LEARNING CURVE
cost of 200 units
material(1500*4)
labor(490*4*8.5
var overhead(640*4*4)
total var cost
fixed overhead
50 unit cost
COST OF 150 UNITS

6000
21760
10240
38000
3800
41800
15400
26400

learning curve
1
50
2
100
640*4*8.5
4
200
640*4*4
1
50
2
100
4
200

80%
1000
800 (1000*80%)
640 (800*80%)
70%
1000
700 (1000*70%)
490 (800*0%)

Q 29
A INC if 80%
if 70%

6000
16660 490*4*8.5 B INC
7840 490*4*4
30500
C INC
3050
33550
15400
18150
D COR

lobor hrs
lobor hrs

640*4
490*4

200 units 50 units 150 units RED IN HRS

2560
1000
1560
1960
1000
960 38.46154
600

FIXED COST HAS DECREASED AS TOTAL LABOR COST DEC & FIXES COST IS 10% OF THIS

BID
if 80%
if 70%
DIFF

26400
2640
23760 WRONG AS AT 70%BID IS 18150

DIR LAB HR/UNIT

960/150
6.4

AND LAB RATE PER HR IS 8.5