https://cbept.accaglobal.com/tr-candidate/exam- ACCA PM Practice paper 1
Q.21
Luxury car seat
The estimated labour time for the first unit is 12 hours but a learning curve of 75% is expected to apply for the first eight units produced. The cost of labour is $15 per hour.
The cost of materials and other variable overheads is expected to total $230 per unit. Chair Co plans on pricing the seat by adding a 50% mark-up to the total variable cost per seat, with the labour cost being based on the incremental time taken to produce the eighth unit.
Above info is given and asking
In relation to the luxury car seat, what is the labour cost of the eighth unit?
I am not sure why sample answer says correct answer $45.65 but I can't figure this out as I only Get $75.94
Your support will be much appreciated
Ask the Tutor ACCA PM
what is the labour cost of the eighth unit?
2y ago#1You are calculating the total cost of 8 not the 8th!!!!
5.0625
*15
= 75.94 but that is for 8 chairs
Not the 8th
thank you but I still can't work this, as correct answer is $45.65 not $75.94,
need help with working please
2y ago#3Did it give you a learning rate in the question?
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