Northern DefenseNorthern 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:

Direct material cost	$ 87 comma 000$87,000	per unit of RS-32
Direct manufacturing labor time for first unit	3 comma 4003,400	direct manufacturing labor-hours
Learning curve for manufacturing labor time per radar system	8585%	cumulative average timeSuperscript aa
Direct manufacturing labor cost	$2222	per direct manufacturing labor-hour
Variable manufacturing overhead cost	$1515	per direct manufacturing labor-hour

Superscript aaUsing

the formula for an

8585%

learning curve, b = StartFraction ln 0.85 Over ln 2 EndFraction equals StartFraction negative 0.162519 Over 0.693147 EndFraction equals negative 0.234465

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 unit to the nearest whole number.)

Number of	Cumulative average time			Cumulative total time:
units	per unit: Labor-hours			Labor-hours
2
4
8