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:(Click icon to view data)RequirementCalculate the total variable costs of producing 2, 4, and 8 units.Begin by calculating the cumulative total time in labor-hours using the cumulative average-time learning model. (Round the cumulative average time per unit to the nearest whole number.)Cumulative number of Cumulative average timeunits2per unit: Labor-hoursCumulative total time:Labor-hours48Data tableDirect material cost$84,000 per unit of RS-32Direct manufacturing labor time for first unitLearning curve for manufacturing labor time per radar system3,800 direct manufacturing labor-hours85% cumulative average time²Direct manufacturing labor cost$23 per direct manufacturing labor-hourVariable manufacturing overhead cost$17 per direct manufacturing labor-hourUsing the formula for an 85% learning curve, b =In 0.85In 2-0.1625190.693147-= -0.234465PrintDone-

Northern Defense - RS-32 Production CostsLearning Curve Calculation:We'll use the given formula (b =…

Answered: Northern Defense manufactures radar…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Suppose the smartphone manufacturer Peony Electronics provides the following information for its costs last month (in millions): (Click the icon to view the costs.) Read the requirements. Requirements 1, 2 and 3. Classify each of these costs according to its place in the value chain. Within the production category, break the costs down further into three subcategories: Direct Materials, Direct Labor, and Manufacturing Overhead. Then calculate the total cost for each value chain category. (Enter amounts in millions. If an input field is not used in the table, leave the input field empty; do not enter a zero.) Cost Delivery expense Salaries of salespeople Chipset Exterior case for phone Assembly-line workers' wages Technical support hotline Depreciation on plant and equipment Rearrange production process 1-800 (toll-free) line for customer orders Scientists' salaries Total costs Cost R and D $ 14 Peony Electronics Value Chain Cost Classification Direct Design Materials LA 60 5 $…
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Oakwood Company produces maple bookcases. The following information is available for the production of a recent order of 500 bookcases. Process time Inspection time Move time Wait time 1. Compute cycle time. 2. Compute cycle efficiency. 19 days 1 day 4 days 17 days 3. Management believes it can reduce move time by 1 day and wait time by 2 days by adopting lean manufacturing techniques. Compute cycle efficiency assuming the predictions are correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute cycle time. Inspection time Move time Process time Wait time Cycle time Cycle Time Required 3 Time 0
Please answer quick in 30 minutes. Prepare a comprehensive report to management highlighting three-year make-or-buy unit cost analysis and recommend appropriate action. What are the other non-cost variables that would be helpful in this analysis? As a manufacturing analyst, you are a member of a make-or-buy review team for electric components and work for a multinational company, TransAll Ltd. Your marketing group estimates the following volumes for a component required for motor assembly: Year 1; 300,000 units, Year 2: 500,000 units, Year 3: 200,000 units. A Chinese supplier has quoted the price as Mu(monetary unit) 0.10 per unit with 10 % price decrease per year for year 2 and 3 for the same component. . Shipping and handling costs are expected to be Mu 0.01 per unit for years 1 through 3. Additional inventory handling charges are Mu 0.005 per unit. In addition, purchasing costs are estimated at Mu 20 per purchase order with a purchase order being released every month for the…
Requirement 1. Calculate the total variable costs of producing 2, 3, and 4 units assuming that Northern Defense uses an 85% incremental unit-time learning model as a basis for predicting manufacturing labor-hours. Begin by calculating the cumulative total time in labor-hours using the incremental unit-time learning model. (Round the individual unit time for Xth unit to the nearest whole number) Individual unit time for Cumulative total time: Cumulative number of units 1 2 Xth unit: Labor-hours Labor-hours 3 Data table Direct materials cost Direct manufacturing labor time for first unit Learning curve for manufacturing labor time per radar system Variable manufacturing overhead costs $ 83,000 per unit of RS-32 Direct manufacturing labor costs "Using the formula for an 85% learning curve, b= In 0.85 In 2 -0.162519 0.693147 3,900 direct manufacturing labor-hours 85% incremental unit-time" 20 per direct manufacturing labor-hour 12 per direct manufacturing labor-hour =-0.234465
Directions: Answer the following questions by the due date. Use numerical calculations (if needed) to support your argument. Submit your answers through uploading a Microsoft Word file, Excel file or PDF. Tread-Force Fitness, Inc. assembles and sells elliptical machines. All activity costs are related to labor. Management must remove $2.00 of activity cost from the product in order for it to remain competitive. Activity-based product information for each elliptical machine is as follows: (Hrs per unit) Activity Activity Based Usage x Activity rate / hr = Activity Cost Moving 0.20 $15 $3.00 Motor Assembly 1.50 $20 $30.00 Final Assembly…
Vermont Instruments manufactures two models of calculators. The fiancé model is the Fin-X and the scientific model is the Sc-X. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is in the cost of the parts. The following data are available for June: Fin-X Sci-X Total Number of units 12,000 40,000 52,000 Parts cost per unit $25 $23 Other costs: Direct labor $53,000 Indirect materials 18,000 Overhead…
Learning curve, cumulative average-time learning model. 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: Calculate the total variable costs of producing 2, 4, and 8 units.
Compute Lead Time Jackson Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 50 parts. A part requires 5 minutes in milling and 10 minutes in finishing. The move time between the two operations for a complete batch is 11 minutes. Under the lean philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 6 parts and the move time is eliminated. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the traditional and lean manufacturing methods. If required, round percentages to one decimal place. Traditional Philosophy Lean Manufacturing Philosophy Value-added time ? min ? min Non-value-added time ? min ? min Total lead time ? min ? min Value-added ratio…
Subject: Acounting
model for the most recent iPhone as well as a deluxe model. Management has designed an ABC system with the following activity cost pools and activity rates for these models: Check my wark Activity Cost Pool Supporting manufacturing Order processing Activity Rates $ 2 per direct labour-hour $20 per order $61 per custoner Customer service Management would like an analysis of the profitability of a particular customer, Cell City, which has ordered the following products over the last 12 months: Standard Deluxe Model Model 200 Number of cases Number of orders Direct labour-hours per case Selling price per case Direct materials cost per case 6e 2 e. 25 $440 0.40 60 $417 $ 20 The company's direct labour rate is $20 per hour. Required: Using the company's ABC system, compute the customer margin of Cell City.

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