How do I compute direct labor costs?
Lake corporation manufactures specialty components for the electronics industry in a highly labor intensive environment. Arc Electronics has asked Lake to bid on a component that Lake made for ARc last month. The previous order was for 80 units and required 120 direct labor to manufacture Arc would now like 240 additional components. Lake experiences an 80% learning curve on all of its jobs. The number of direct labor hours needed for Lake to complete the 240 additional components is ?
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