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: Home Insert Page Layout Formulas Data Review View 1 Direct material cost 2 Direct manufacturing labor time for first unit 3 Learning curve for manufacturing labor time 4 Direct manufacturing labor cost 5 Variable manufacturing overhead cost $ 84,000 per unit of RS-32 4,400 direct manufacturing labor-hours 85% cumulative average time 27 per direct manufacturing labor-hour 13 per direct manufacturing labor-hour per radar system 2$ In 0.85 -0.162519 7 "Using the formula (page 391), for an 85% learning curve, b= In 2- 0.693147 =-0234465 Calculate the total variable costs of producing 2, 4, and 8 units.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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:
Home
Insert
Page Layout
Formulas
Data
Review
View
1 Direct material cost
2 Direct manufacturing labor time for first unit
3 Learning curve for manufacturing labor time
4 Direct manufacturing labor cost
5 Variable manufacturing overhead cost
$ 84,000 per unit of RS-32
4,400 direct manufacturing labor-hours
85% cumulative average time
27 per direct manufacturing labor-hour
13 per direct manufacturing labor-hour
per
radar system
2$
In 0.85
-0.162519
7 "Using the formula (page 391), for an 85% learning curve, b=
In 2- 0.693147 =-0234465
Calculate the total variable costs of producing 2, 4, and 8 units.
Transcribed Image Text: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: Home Insert Page Layout Formulas Data Review View 1 Direct material cost 2 Direct manufacturing labor time for first unit 3 Learning curve for manufacturing labor time 4 Direct manufacturing labor cost 5 Variable manufacturing overhead cost $ 84,000 per unit of RS-32 4,400 direct manufacturing labor-hours 85% cumulative average time 27 per direct manufacturing labor-hour 13 per direct manufacturing labor-hour per radar system 2$ In 0.85 -0.162519 7 "Using the formula (page 391), for an 85% learning curve, b= In 2- 0.693147 =-0234465 Calculate the total variable costs of producing 2, 4, and 8 units.
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