The Wildcat Company makes diamond rings. It has provided the following information:

Units of Output2 Units4 Units

Direct materials$ 18,000$ 36,000

Workers' wages6,80011,560

Variable Overhead (Based on DL Hours)8501,445

Supervisors' salaries32,00032,000

Equipment depreciation15,20015,200

Management is unsure of the learning curve in its operations but it knows that it pays $400 per hour to the specialist employee. Assume all jobs to be equal in size. Also assume that all units are within the relevant range. Keep your answer rounded.

1. How much was the employee paid for making the 8^thunit using incremental unit-time method?
2. $1,960
3. $1,372
4. $1,543.50
5. $2,205

2.What is the total cost of building 8 rings by a new employee using the cumulative average-time method?

A) $133,600

B) $130,450

C) $141,277

D) None of the above