Case Study 2 A Product That Is Very Labor Intensive Assembled at Boyds

Case Study 2
A product that is very labor intensive assembled at Boyds Aero Structure in Memphis has an average labor cost of $20/hr. Overhead expenses are charged at 100% of labor at this company.
Time for the very first unit = 10 hours
Time for the fourth unit = 8.1 hours.
-What is the cumulative time for 100 units to be made?

A) 869.12 hrs
B) 581.33 hrs
C) 761.84 hrs
D) 621.68 hrs

Correct Answer:

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