Question
10-29 Learning curve, cumulative average-time learning model. Global Defense manufactures radar systems. It has just completed the manufacture of its first newly designed system,
10-29 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: Home Insert Page Layout Formulas A Data Review View B 1 Direct material cost 2 Direct manufacturing labor time for first unit 3 Leaming curve for manufacturing labor time per radar system 4 Direct manufacturing labor cost 5 Variable manufacturing overhead cost $160,000 per unit of RS-32 C 6,000 direct manufacturing labor-hours 85% cumulative average time $ $ 30 per direct manufacturing labor-hour 20 per direct manufacturing labor-hour 6 In 0.85 7 Using the formula (p. 359), for a 85% learning curve, b = = In 2 -0.162519 0.693147 =-0.234465 8 CHAPTER 10 DETERMINING HOW COSTS BEHAVE Required Calculate the total variable costs of producing 2, 4, and 8 units.
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