Answer:
Unter Components
If Unter accepts the offer, the direct labor-hours required to produce the additional systems are:
= 8,640 hours.
Explanation:
a) Data and Calculations:
Product Lines                 Star100    Star150
Direct materials                $ 55       $ 65 
Direct labor                          24           30 
Variable overhead               10            15 
Fixed overhead                   80          110 
Total cost per unit          $ 169    $ 220 
Price                               $ 280    $ 380 
Units sold                       4,000    2,000
Average wage rate is $15 per hour
Product Lines                 Star100          Star150
Hours to make one unit    1.6 hours      2 hours ($24/15 and $30/$15)
Special offer by a nationwide car-sharing service:
Systems to buy             2,400     2,400
Offered price                  $190     $240
Hours to make systems 3,840   4,800  
(2,400 *1.6 hours and 2,400 *2 hours)
Total hours required to make both systems = 8,640 hours (3,840 + 4,800)