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 predictingmanufacturing 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:Cumulativenumber of units12Xth unit: Labor-hoursLabor-hours3Data tableDirect materials costDirect manufacturing labor time for first unitLearning curve for manufacturing labor time per radar systemVariable manufacturing overhead costs$ 83,000 per unit of RS-32Direct manufacturing labor costs"Using the formula for an 85% learning curve, b=In 0.85In 2-0.1625190.6931473,900 direct manufacturing labor-hours85% incremental unit-time"20 per direct manufacturing labor-hour12 per direct manufacturing labor-hour=-0.234465

Variable cost refers to the expenses that change in proportion to the level of production or sales…

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 manufacturing labor-hours ming model (Round the individual unit time for Xth unit to the nearest whole numbe

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 manufacturing labor-hours ming model (Round the individual unit time for Xth unit to the nearest whole numbe

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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Question

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

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