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Python Radars manufactures radar systems. It has just completed the manufacture of its first newly designed system, RS-32. Manufacturing data for the RS-32 follow:
Python Radars 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 units per unit: Labor-hours 2 4 8 Cumulative total time: Labor-hours Now calculate the total variable costs of producing 2, 4, and 8 units. Variable costs of producing 4 Units 2 Units Direct materials Direct manufacturing labor Variable manufacturing overhead Total variable costs Data Table Direct material cost Direct manufacturing labor time for first unit 8 Units Learning curve for manufacturing labor time per radar system Direct manufacturing labor cost $ 89,000 per unit of RS-32 3,600 direct manufacturing labor-hours 85% cumulative average time" $ 26 per direct manufacturing labor-hour Variable manufacturing overhead cost $ 16 per direct manufacturing labor-hour 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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