Learning curve, cumulative average time learning curve. Global Radar manufactures radar systems. It has just completed the manufacture of its first newly designed system, RS-32. It took 3,000 direct manufacturing labour-hours (DMLH) to produce this one unit.

Global believes that a 90% cumulative average time learning model for direct manufacturing labour-hours applies to RS-32. (A 90% learning curve implies b — -0.1520) The variable costs of producing RS-32 are as follows:

Direct materials costs $96,000 per RS-32 Direct manufacturing labour costs $30 per DMLH Variable manufacturing overhead costs $18 per DMLH Required Calculate the total variable costs of producing two, four, and eight units.