The number of labor hours to produce the first unit

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You have received an order for 300 specially made items. On similar type items the improvement rate was 20%. The number of labor hours to produce the first unit was 14 hours, T1 (labor) = 14 hrs. Assume no learning for direct materials i.e T1 (materials) = T2(materials) =...= TN(materials) = $20. If direct labor costs an average $40.00/hour, direct material cost average $10 per item, and overhead is 120% of direct materials cost, estimate the total cost to produce the 300 items.

Reference no: EM131162929

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