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Global Defender manufactures radat systems. It has just completed the manufacture of its first newly designed system. BS.32 Mandatang data 2 Click icon to view
Global Defender manufactures radat systems. It has just completed the manufacture of its first newly designed system. BS.32 Mandatang data 2 Click icon to view data) Requirement Calculate the total variable costs of producing 2.4 and 8 units. Begin by calculating the total cumulative time in labor-hours. (Round the cumulative average time per unt to rest whicle number) Number of Cumulative average time Cumulative total time units per unit: Labor hours Labor hours 2 2,635 5270 2,240 8,960 1904 15232 4 8 Now calculate the total variable costs of producing 2, 4 and 8 units Variable costs of producing 2 Units 4 Units 8 Units Direct materials Direct manufacturing labor Variable manufacturing overhead Total variable costs Data Table Direct material cost $ 87,000 per unit of RS-32 Direct manufacturing labor time for first unit 3,100 direct manufacturing labor-hours Learning curve for manufacturing labor time per radar system 85% cumulative average time" Direct manufacturing labor cost $ 29 per direct manufacturing labor-hour Variable manufacturing overhead cost $ 10 per direct manufacturing labor hour In 0.85 -0.162519 *Using the formula for an 85% learning curve, b = = -0.234465 In 2 0.693147 Print Done
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