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Catherine Designs is a company that manufactures sofas. A wholesaler, Best Home plc has approached them to provide 200 sofa sets. The sets must include a three seater, a love seat and a single seater. The wholesaler has asked Catherine Designs to submit their tender for this proposal The material required for production will include fabric, wood, screws etc. The estimated cost for the material for 10 sets is $5,250. According to the specifications of the order, Catherine Designs have concluded that it will take 42 hours to craft out the first sofa set. A 90% learning curve will apply for further production Once the 80th set is produced, the learning rate will cease. The time taken for the 30th set will apply to the remaining production. Labour is available at $15 per hour. The company usually works 45,000 hours per annum The company utilizes the high low method to analyse the overheads. Overheads are accounted for on the basis of hours worked. Below are the overhead costs for the past four months. Month 1 Month 2 Month 3 Month 4 Hours worked 3,850 3,680 3,560 3,750 Overhead cost $ 46,680 45,440 43,200 45,900 Note: at the learning rate of 0.9 (90%), the learning factor (b) would be -0.1520. Required: Required: (a) As a manager of Catherine Designs, calculate the total cost of the project in order to prepare the tender (13 marks) (6) With a learning rate of 80%, determine the production time for the second sofa set. (5 marks) ) Catherine Designs has just launched a new bar stool and the learning curve effect was a observed during the production. Using the information in the table below, determine the observed learning rate. (7 marks) Time to produce the first barstool 36 direct labor hours Number of barstools produced to date 25 Cumulative time taken to make all 25 bar 236.5 direct labor stools hours Catherine Designs is a company that manufactures sofas. A wholesaler, Best Home plc has approached them to provide 200 sofa sets. The sets must include a three seater, a love seat and a single seater. The wholesaler has asked Catherine Designs to submit their tender for this proposal The material required for production will include fabric, wood, screws etc. The estimated cost for the material for 10 sets is $5,250. According to the specifications of the order, Catherine Designs have concluded that it will take 42 hours to craft out the first sofa set. A 90% learning curve will apply for further production Once the 80th set is produced, the learning rate will cease. The time taken for the 30th set will apply to the remaining production. Labour is available at $15 per hour. The company usually works 45,000 hours per annum The company utilizes the high low method to analyse the overheads. Overheads are accounted for on the basis of hours worked. Below are the overhead costs for the past four months. Month 1 Month 2 Month 3 Month 4 Hours worked 3,850 3,680 3,560 3,750 Overhead cost $ 46,680 45,440 43,200 45,900 Note: at the learning rate of 0.9 (90%), the learning factor (b) would be -0.1520. Required: Required: (a) As a manager of Catherine Designs, calculate the total cost of the project in order to prepare the tender (13 marks) (6) With a learning rate of 80%, determine the production time for the second sofa set. (5 marks) ) Catherine Designs has just launched a new bar stool and the learning curve effect was a observed during the production. Using the information in the table below, determine the observed learning rate. (7 marks) Time to produce the first barstool 36 direct labor hours Number of barstools produced to date 25 Cumulative time taken to make all 25 bar 236.5 direct labor stools hours