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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Activity for Standard Costing Instructions: Read the problem carefully and compute for what is required. Show your complete solution Problem # 1 Max Manufacturing The following March information is available for Max Manufacturing Company when it produced 2,100 units: Standard: Material 2 pounds per unit @ $5.80 per pound Labor 3 direct labor hours per unit @ $10.00 per hour Actual: Material 4,250 pounds purchased and used @ $5.65 per pound Labor 6,300 direct labor hours at $9.75 per hour Compute for the following for Max Company: Material Price Variance Material Quantity Variance Labor Rate Variance Labor Efficiency Variance
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