Essay
Austen Co.produced a pilot run of eighty units of a recently developed part used in the finished products.Austen Co.expects to produce and sell 2,560 units annually.The pilot run required 40 direct labor hours for the eighty units, averaging 0.5 direct labor hours per unit.Austen experiences an eighty percent learning curve.
Required:
Calculate the average direct labor hours per unit for the first 2,560 units (including the pilot run) produced.
Correct Answer:

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.16384 hours per unit
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Correct Answer:
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