1. The Company just began making boingos at the beginning of Year 1. During Year 1, the company produced 10 boingos and used a total of 20,000 pounds of direct materials and 10,000 direct labor hours (these are both totals, NOT per unit). Each pound of direct material costs $50 and each hour of direct labor costs $30. These 10 units will make up the baseline for your learning curve computations. The class example and the homework problem both had a baseline of only 1 unit, but this problem is different. The management of the company expects a 90% learning curve to be in effect over the first 4 years of producing boingos. The company produced 14 units in Year 2, 16 units in Year 3, and 40 units in Year 4. Compute the total estimated direct labor COST for Year 4.

2. Refer to question 1. Compute the total estimated direct materials COST for Year 4.