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Spin Inc., manufactures complex units of motorboats. Fabricating these units require a high degree of technical skill. However, employees have an opportunity to learn how to produce the units more effectively. In estimating direct labor-hours, a 70% learning curve can be used. Completing one prototype unit required 1,200 labor hours at a cost of P18,000.
Question 1. The cumulative average worker-hours per unit for a total of 2 units is
Question 2. The cumulative average worker-hours unit for a total of 8 units is
Question 3. The estimated direct labor cost for an order of seven additional units is
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