Racing 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 more data) Read the requirements, Requirement 1. Calculate the total variable costs of producing 2, 3, and 4 units. Begin by calculating the cumulative total time in labor-hours. (Round the individual unit time for Xth unit to the nearest whole number.) Number of Individual unit time for Cumulative total time: Data Table units Xth unit: Labor-hours Labor-hours 2 3315 7215 3 3014 10229 B C 4 2818 13047 1 Direct material cost $ 86,000 per unit of RS-32 2 Direct manufacturing labor time for first unit 3,600 direct manufacturing labor-hours 3 Learning curve for manufacturing labor time per radar system 85% cumulative average timea 4 Direct manufacturing labor cost $ 24 per direct manufacturing labor-hour 5 Variable manufacturing overhead cost $ 14 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 Print Done Enter any number in the edit fields and then click Check Answer. i Requirements - 1. Calculate the total variable costs of producing 2, 3, and 4 units. 2. Compare the cost predictions from requirement 1 (incremental unit-time learning model) with the cost predictions of producing 2, 4, and 8 units based on a cumulative average-time learning model. Why are the predictions different? How should Racing Radars decide which model it should use? Cumulative average-time learning model's cumulative average time per unit and cumulative total time and total variable cost predictions of producing 2, 4, and 8 units: Number of Cumulative average time Cumulative total time: units per unit: Labor-hours Labor-hours 2 3,060 6,120 4 2,601 10,404 8 2,211 17,688 Variable costs of producing 2 Units 4 Units 8 Units Total variable costs $ 404,560 $ 739,352 $ 1,360,144 Print Done