Northern Defense manufactures radar systems. It has just completed the manufacture of its first newly...
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Northern Defense manufactures radar systems. It has just completed the manufacture of its first newly designed system, RS- 32 . Manufacturing data for the RS-32 follow: (Click icon to view data) Requirement Calculate the total variable costs of producing 2,4 , and 8 units. Begin by calculating the cumulative total time in labor-hours using the cumulative average-time learning model. (Round the cumulative average time per unit to the nearest whole number.) Data table Direct material cost Direct manufacturing labor time for first unit Learning curve for manufacturing labor time per radar system Direct manufacturing labor cost Variable manufacturing overhead cost $81,000 per unit of RS-32 3,700 direct manufacturing labor-hours 85% cumulative average time 8 $28 per direct manufacturing labor-hour $17 per direct manufacturing labor-hour a Using the formula for an 85% learning curve, b=ln2ln0.85=0.6931470.162519=0.234465 Northern Defense manufactures radar systems. It has just completed the manufacture of its first newly designed system, RS- 32 . Manufacturing data for the RS-32 follow: (Click icon to view data) Requirement Calculate the total variable costs of producing 2,4 , and 8 units. Begin by calculating the cumulative total time in labor-hours using the cumulative average-time learning model. (Round the cumulative average time per unit to the nearest whole number.) Data table Direct material cost Direct manufacturing labor time for first unit Learning curve for manufacturing labor time per radar system Direct manufacturing labor cost Variable manufacturing overhead cost $81,000 per unit of RS-32 3,700 direct manufacturing labor-hours 85% cumulative average time 8 $28 per direct manufacturing labor-hour $17 per direct manufacturing labor-hour a Using the formula for an 85% learning curve, b=ln2ln0.85=0.6931470.162519=0.234465
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