Based on the information provided below, for each item below, enter the appropriate amounts in the associated cells. For items 1, 2, 4, and 5, enter all amounts as positive whole numbers. For item 3, enter the amount as a positive number rounded to the nearest hundredth. Round all interim calculations to the nearest hundredth.

Item	Amount
1. Learning curve percentage
2. Total number of labor hours to assemble 3,200 units
3. Variable labor hours for the various number of units assembled
4. Fixed labor hours for the various number of units assembled
5. Incremental labor cost to assemble 3,000 units

Email from Production manager

To: Viola Waller, Accounting Associate

From: Gideon Mckee, Production Manager

RE: Labor Hours

Hi Viola,

Per our discussion in the last meeting, I have confirmed with the production supervisor that the labor hours on each item we assemble is declining. For the first 200 units assembled, the total labor hours required is 460. For the assembly of 400 units, the total labor hours required is 828. The decline in the average hours per unit seems to be constant when the number of assembled units doubles.

Let me know if you have any questions.

Regards,

Gideon Mckee

Production Manager

Email from Accounting manager

To: Viola Waller, Accounting Associate

From: Rehan Barrett, Accounting Manager

RE: Labor Cost Estimation

Hi Viola,

We have received an order to assemble 3,000-3,200 units for Coastal Supplies Corp. The CFO wants us to estimate the incremental labor costs for the new order.

I have discussed the learning curve in the assembly process with Gideon, the production manager, who will confirm its percentage.

The CFO also notes that we may be accepting other orders. Depending on our capacity, the number of units assembled for this order may vary. Please try to determine the formula for total hours for various cumulative units assembled. The estimation does not need to be overly complicated; the high-low approach will suffice. Assume 3,200 as the maximum number of units assembled.

Let me know if you have further questions.

Thank you,

Rehan Barrett

Accounting Manager

Cost Summary

Item Amount

Material cost $60 per unit assembled

Labor cost $30 per labor hour

Other costs $45,000 per year