Learning curve, cumulative average-time learning model. Global Defense manufactures radar systems. It has just completed the manufacture
Question:
Learning curve, cumulative average-time learning model. Global 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:
Calculate the total variable costs of producing 2, 4, and 8units.
Transcribed Image Text:
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 3,000 direct manufacturing labor-hours 90% cumulative average time" 25 per direct manufacturing labor-hour 15 per direct manufacturing labor-hour In 0.90 %3D In 2 Using the formula (p. 356), for a 90% leaming curve, b = -0.105361 0.693147 = -0.152004
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Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
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