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Please show calculations for the entire problem Northern Defense manufactures radar systems. It has just completed the manufacture of its first newly designed system, RS-32.
Please show calculations for the entire problem
Northern 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 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 Data Table 2 2,635 5,270 8,960 4 2.240 8 1,904 15,232 Direct material cost $ 88,000 per unit of RS-32 Now calculate the total variable costs of producing 2, 4, and 8 units. Variable costs of producing 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 timea Direct manufacturing labor cost $ 25 per direct manufacturing labor-hour Variable manufacturing overhead cost $ 15 per direct manufacturing labor-hour In 0.85 -0.162519 a Using the formula for an 85% learning curve, b = = -0.234465 In 2 0.693147 2 Units 4 Units 8 Units Direct materials Direct manufacturing labor Variable manufacturing overhead Total variable costs Print DoneStep by Step Solution
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