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Part 2 of 2 Global Defense manufactures radar systems. It has just completed the manufacture of its first newly designed system, RS-32. Manufacturing data for
Part 2 of 2 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 (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 cu Cumulative total time: Data table Direct material cost Direct manufacturing labor time for first unit Learning curve for manufacturing labor time per radar system Direct manufacturing labor cost Variable manufacturing overhead cost $84,000 per unit of RS-32 3,900 direct manufacturing labor-hours 85% cumulative average time $24 per direct manufacturing labor-hour $14 per direct manufacturing labor-hour Points: 0.22 of 1 Number of units Cumulative average time per unit: Labor-hours 3,315 2,818 2.395 Labor-hours 6,630 11,272 19,160 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 "Using the formula for an 85% learning curve, b In 0.85 In 2 -0.162519 0.693147 =-0.234465 Print Done
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