The Helicopter Division of Blue Sky, Inc., is examining helicopter assembly costs at its Delaware plant....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Helicopter Division of Blue Sky, Inc., is examining helicopter assembly costs at its Delaware plant. It has received an initial order for eight of its new land-surveying helicopters. Blue Sky can adopt the labor-intensive method or the machine-intensive method to assemble the helicopters as per the data shown in the follow table. Labor Intensive Method Machine Intensive $40,000 2,000 labor hours 85% cumulative average Method Direct Material Cost per Helicopter Direct Assembly Labor Time for First Helicopter Assembly labor time learning curve per Helicopter average Direct assembly labor cost Equipment related Overhead Cost $36,000 800 labor hours 90% cumulative $30 per hour $12 per DLH 50% of Direct Material Cost $30 per hour $45 per DLH 50% of TASK TWO: What is the total cost of assembling the first eight helicopters under a) The labor-intensive method b) The machine intensive method Material Handling Overhead Cost Direct Material Cost The company is requested to prepare a bid for the first eight helicopters. TASK ONE: How many direct assembly labor hours are required to assemble the first eight helicopters under a) The labor-intensive method b) The machine intensive method The Helicopter Division of Blue Sky, Inc., is examining helicopter assembly costs at its Delaware plant. It has received an initial order for eight of its new land-surveying helicopters. Blue Sky can adopt the labor-intensive method or the machine-intensive method to assemble the helicopters as per the data shown in the follow table. Labor Intensive Method Machine Intensive $40,000 2,000 labor hours 85% cumulative average Method Direct Material Cost per Helicopter Direct Assembly Labor Time for First Helicopter Assembly labor time learning curve per Helicopter average Direct assembly labor cost Equipment related Overhead Cost $36,000 800 labor hours 90% cumulative $30 per hour $12 per DLH 50% of Direct Material Cost $30 per hour $45 per DLH 50% of TASK TWO: What is the total cost of assembling the first eight helicopters under a) The labor-intensive method b) The machine intensive method Material Handling Overhead Cost Direct Material Cost The company is requested to prepare a bid for the first eight helicopters. TASK ONE: How many direct assembly labor hours are required to assemble the first eight helicopters under a) The labor-intensive method b) The machine intensive method
Expert Answer:
Answer rating: 100% (QA)
TASK ONE a The laborintensive method Direct assembly labor time for the first helicopter 2000 labor hours Learning curve per helicopter 85 cumulative average To calculate the direct assembly labor tim... View the full answer
Related Book For
Statistics Data Analysis And Decision Modeling
ISBN: 9780132744287
5th Edition
Authors: James R. Evans
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
The Helicopter Division of Aerospatiale is studying assembly costs at its Marseilles plant. Past data indicates the following labor hours per helicopter: Helicopter Number Labor Hours 1 2,000 2 1,400...
-
what is the name of Dc output symbol on eagle in this circuit? XL2 EE20 core Flyback Transformer 4 SCHOTTKY [ 3 D4 SB160 IC2 EL817 OPTOCOUPLER thS 1 2 C2 470uF 25V R3 Tko ZD1 12V/1W DC Output 12V,...
-
A metal ball of radius a is located at a distance l from an infinite ideally conducting plane. The space around the ball is filled with a homogeneous poorly conducting medium with resistivity p. In...
-
A car alarm is emitting sound waves of frequency 520 Hz. You are on a motorcycle, traveling directly away from the car. How fast must you be traveling if you detect a frequency of 490 Hz?
-
You have recently been employed as the manager of internal audit for a large multinational financial services company. It is clear to you that you have been given the job because of your reputation...
-
Gheorghe Moresan Lumber Company handles three principal lines of merchandise with these varying rates of gross profit on cost. Lumber ......... 25% Millwork ........ 30% Hardware and fittings .. 40%...
-
Helping a Business Owner With a Tax Problem Chris, the owner of a catering company, needs business advice. He recently traveled to New York for a week and spent five days on business and two days...
-
1. This family business has made numerous transitions. It started as two brothers and their wives (Whitehall), then became a husband and wife team (Judds Hill), and finally parents with their son and...
-
This program checks if a given integer is a prime number. You are to design the processor's FSMD, Datapath and control unit to execute this algorithm. The pseudocode is given below: IsPrime(n): if n
-
Dog Delight must go, declared Mary Gold, Chief Executive Officer (and majority shareholder) of publicly traded PET Publications, Inc., (PPI) at the quarterly Board of Directors meeting last night....
-
Why do many organizations approach the whole management of [information] technology in an unstructured or ad hoc manner throughout the systems lifecycle? Why dont they view it as a structured...
-
Which of the following is potentially a planning technique to reduce unemployment taxes? Avoiding employee classification? Employee leasing? Operating in a new state? Acquisition of another...
-
We often talk of tangible and intangible benefits when evaluating IS/IT investments. How useful is this distinction? Consider the case study discussed in this chapter and the benefits identified when...
-
The authors state that technology scanning is seldom done formally. Information strategy typically evolves through a problem-driven process, with both top-down and bottom-up inputs from IT managers...
-
Bob is facing southwest and Angie is facing southeast. they both move a quarter turn to their right. what do one or both of them need to do before they both face northwest?
-
Assume that a trial balance is prepared with an account balance of $21,360 listed as $21,630 and an account balance of $1,500 listed as $15,000. Identify the transposition and the slide.
-
For the data in the Excel file New Account Processing, perform chisquare tests for independence to determine if certification is independent of gender, and if certification is independent of having...
-
How can one estimate the mean and variance of data that are summarized in a grouped frequency distribution? Why are these only estimates?
-
Explain the differences between categorical, ordinal, interval, and ratio data.
-
New Science leadership: A. Thinks of leadership through a new perspective of naturally occurring events. B. Is based on ethics, biology, and chemistry. C. Involves leading based on the situation. D....
-
Situational and Contingency theory: A. Embodies the idea that the leader does the right thing based on the situation. B. Involves assessing the nature of the task and the followers motivation to...
-
Kouzes and Posner (1995) asserted that leaders use the following practice(s) of leadership: A. Challenging the status quo. B. Inspiring a shared vision. C. Enabling others to act rather than to...
Study smarter with the SolutionInn App