RadarsRUs manufactures radar systems. It has just completed the manufacture of its first newly designed system, RS-32. Manufacturing data for the RS-32 follow:

Requirement

Calculate the total variable costs of producing 2, 4, and 8 units.

Begin by calculating the total cumulative time in labor hours.

# of Units	Cumulative average time per unit: Labor Hrs.	Cumulative total time: Labor Hrs.
2
4
8

Now, calculate the total variable costs of producing 2 units, then calculate the total variable costs for 4 and 8 units.

Variable cost of producing:	2 units	4 units	8 units
Direct Materials
Direct Manufacturing labor
Variable manufacturing overhead
Total variable costs

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 $81,000 per unit of RS-32 3,200 direct manufacturing labor-hours 85% cumulative average timea $25 per direct manufacturing labor-hour $19 per direct manufacturing labor-hour In 0.85 -0.162519 Using the formula for an 85% learning curve, b.h2. In 2 0693147