Learning curve, cumulative average-time learning model. Global Defence manufactures 5 radar systems. It has just coinpleted the manufacture of its first newly designed system, RS-32. ——_jpta\ variable costs of Manufacturing data for the RS-32 follow:

REQUIRED Calculate the total variable costs of producing 2, 4, and 8 units. ;LO1

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Direct material cost Direct manufacturing labour time for first unit Learning curve for manufacturing labour time per radar system Direct manufacturing labour cost Variable manufacturing overhead cost "Using the formula for a 90% learning curve, $80,000 3,000 90% $ 25 per unit of RS-32 direct manufacturing labour-hours (DMLH) cumulative average time per direct manufacturing labour-hour (DMLH) $15 per direct manufacturing labour-hour (DMLH) b In 0.90 -0.105361 In 2 0.693147 = -0.152004