Bhimani, Horngren,
Datar and Rajan,
Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012 both its external (5000 units) and internal market (8000 units. The marginal cost for producing 13,000
Comps is shown below £
£ Materials 25
× 13000 325,000 Labour 15
× W 924,300 Overheads
3
× 61,620 184,860
Total marginal cost 1,434,160 Units produced
13,000
Marginal cost per unit 110 Working 1 Y = ax b
Y = (20) (13,000 to the power of the log of the learning curve rate/log of 2) Y = (20) (13,000 0.152
) Y = 4.74 hours per unit Total labour hours 13,000 units
×
4.74 hours per unit = 61,620
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