Business, 20.10.2021 14:00 monifaWilson

Carr Company produced a pilot run of ninety units of a recently developed piston used in one of its products. Carr expected to produce and sell 1,890 units annually. The pilot run required an average of 0.55 direct labor hours per piston for 90 pistons. Carr experienced an seventy percent learning curve on the direct labor hours needed to produce new pistons. Past experience indicated that learning tends to cease by the time 1,440 pistons are produced. Carr's manufacturing costs for pistons are presented below. Direct labor $ 18.00 per direct labor hour
Variable overhead 8.00 per direct labor hour
Fixed overhead 20.00 per direct labor hour
Materials 3.00 per unit
Carr received a quote of $10 per unit from Truck Machine Company for the additional 1,800 needed pistons. Carr frequently subcontracts this type of work and has always been satisfied with the quality of the units produced by Truck. If the pistons are manufactured by Carr Company, the total direct labor hours for the first 1,440 pistons (including the pilot run) produced is calculated to be (round to two digits after the decimal point):.

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Carr Company produced a pilot run of ninety units of a recently developed piston used in one of its...

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