المحاسب الإداري المعتمد الجزء 1 C. Performance Management

Aeris: Learning Standards for Mapping Pods

Aeris Survey Robotics

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Question of 7 Aeris: Learning Standards for Mapping Pods

Aeris: Learning Standards for Mapping Pods Case-based question

The case

Aeris has accepted a contract for eight identical underwater mapping pods. The first completed pod required 240 direct labor hours. Engineering estimates an 85% cumulative-average learning curve across the first eight pods. Every doubling of cumulative output reduces average labor hours per pod to 85% of the previous average.

The production coordinator proposed budgeting all eight pods at the first-pod time, despite receiving engineering's estimate. The eight pods were completed using 1,260 direct labor hours at a total labor cost of $52,920. The approved standard labor rate is $40 per hour. There were no overtime premiums or changes in product specifications.

Assumptions

The cumulative-average model applies to all eight pods, including the first pod.
Use three doublings from one to eight pods. Keep unrounded learning estimates through each calculation.
For labor cost variances, actual minus standard is the sign convention: a positive amount is unfavorable and a negative amount is favorable.
The learning estimate is a planning assumption, not a guarantee of realized productivity.

Using the 85% cumulative-average learning model, how many total direct labor hours should Aeris budget for the first eight pods? Enter hours rounded to two decimal places.

Answer hours

To 2 decimal places.

What average labor time per pod does the 85% learning model predict once the first eight pods are complete? Enter hours per pod rounded to two decimal places.

Answer hours per pod

To 2 decimal places.

Calculate the labor efficiency variance against the coordinator's proposed standard of 240 hours for each of eight pods. Use the $40 standard rate. Enter whole dollars rounded to the nearest dollar, with positive for unfavorable and negative for favorable.

Answer USD

A whole number. A negative amount may be written with a minus sign or in brackets.

Calculate the labor efficiency variance using engineering's 85% learning estimate for all eight pods. Retain unrounded standard hours and enter dollars rounded to two decimal places, with positive for unfavorable and negative for favorable.

Answer USD

To 2 decimal places. A negative amount may be written with a minus sign or in brackets.

If the coordinator deliberately omits a credible learning estimate to make the labor target easier, which TWO consequences could result? Select exactly TWO.

Select two answers. Selected 0 / 2

Answer The excess hour allowance is a labor rate variance because it raises the payroll budget. Crew capacity is reserved for labor hours the contract should not require, distorting scheduling. A favorable variance against the padded allowance proves crews beat engineering's learning estimate. Repeated favorable reports conceal weaker performance against a realistic learning standard. The larger hour allowance raises the contract's relevant incremental labor cost.

If engineering instead used an 80% cumulative-average learning curve, the eight-pod hour standard would be Effect on standard hours the 85% standard. With actual hours unchanged, the efficiency variance would be Effect on unfavorable efficiency variance unfavorable. Because this is the first contract for an untested assembly design, management should treat the assumed learning rate as Reliability of the learning assumption .

Classify each labor diagnostic: the effect of paying $42 rather than $40 per actual hour Actual wage above standard ; the effect of using more hours than the 85% learning standard allows Hours above engineering allowance ; the variance recalculated when only the engineering hour allowance changes Effect of revised allowed hours ; the difference between actual payroll and actual hours valued at the standard wage Payroll compared with actual hours at standard wage ; the hours-allowed comparison valued at a fixed standard wage Hours difference at standard wage .

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