Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. metal craft is bidding on a new contract to produc

Metal Craft is bidding on a new contract to produce a...

80.2K

Verified Solution

Question

Accounting

image
Metal Craft is bidding on a new contract to produce a part in the landing gear for the Joint Strike Fighter. The lowest bidder will likely win the cost-reimbursable contract to make 600 units. When Chuck Taylor learned the unit cost of the prototype was $667 he was discouraged, thinking that the cost per unit needed to be less than $400 per unit. You told him that the unit cost is not linear but would likely decrease because of learning effects on labor hours. The direct material cost per unit is $250. The direct labor rate is $45.00 per labor hour. The indirect cost rate is $74.00 per labor hour. It took 3.5 hours to make the first unit. Using a learning rate of 85 percent, the total cost estimate to make 600 units is closest to $399,900 $205,768 $210.110 O $201.220

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

Practice questions (1)        The standard costs of wooden ducks on wheels, for the CURRENT year, for 5 mm...

Biology
1.2K views

Short answer Provide the answer to 6 of the questio can cause a serious complication...

Biology
1.2K views

Question 9 Points 1 Which Constitutional amendment passed in 1964 essentially ended the systematic prohibition...

Basic Math
1.2K views

You measure 25 dogs' weights, and find they have a mean weight of 41 ounces....

Algebra
1.2K views

Aiden earned 675 from mowing lawns last summer He deposited this money in an account...

Algebra
1.2K views

When a draftsman draws three lines that are to intersect at one point the lines...

Accounting
1.2K views

Bir dl oluturuluyor ve her iki ylda bir 11.000 $ deyecek ve ilk taksit iki...

Accounting
1.2K views

Frontier Corporation has fixed costs of $202,650 and net operating income of $105,000. What is...

Accounting
1.2K views

pleass show all work ans written graph Maximum bonor Availabler Day...

Accounting
1.2K views

How much of the following do you report as income on your individual income tax...

Accounting
1.2K views

On January 1, Ms. Plummer commenced a small business to trade clothing. She invested some...

Accounting
1.2K views

Please review the recent revision on the US revenue recognition policy (issued in May 2014)...