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…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 41P: Harriman Industries manufactures engines for the aerospace industry. It has completed manufacturing...

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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: (Click icon to view data) Requirement Calculate the total variable costs of producing 2, 4, and 8 units. Begin by calculating the total cumulative time in labor-hours. (Round the cumulative average time per unit to the nearest whole number.) Number of Cumulative average time Cumulative total time: units per unit: Labor-hours 2 2,635 4 2,240 8 1,904 Direct materials Direct manufacturing labor Variable manufacturing overhead Total variable costs Labor-hours Now calculate the total variable costs of producing 2, 4, and 8 units. Variable costs of producing 4 Units 2 Units 5,270 8,960 15,232 8 Units Data Table Direct material cost Direct manufacturing labor time for first unit Learning curve for manufacturing labor time per radar system Direct manufacturing labor cost Variable manufacturing overhead cost aUsing the formula for…
Harriman Industries manufactures engines for the aerospace industry. It has completed manufacturing the first unit of the new ZX-9 engine design. Management believes that the 1,000 labor hours required to complete this unit are reasonable and is prepared to go forward with the manufacture of additional units. An 80 percent cumulative average-time learning curve model for direct labor hours is assumed to be valid. Data on costs are as follows: Required: 1. Set up a table with columns for cumulative number of units, cumulative average time per unit in hours, and the cumulative total time in hours. Complete the table for 1, 2, 4, 8, 16, and 32 units. (Round hours to one significant digit.) 2. What are the total variable costs of producing 1, 2, 4, 8, 16, and 32 units? What is the variable cost per unit for 1, 2, 4, 8, 16, and 32 units?
Bumblebee Mobiles manufactures a line of cell phones. The management has identified the following overhead costs and related cost drivers for the coming year. The following were incurred in manufacturing two of their cell phones, Bubble and Burst, during the first quarter. REQUIREMENT Review the worksheet called ABC that follows these requirements. You have been asked to determine the cost of each product using an activity-based cost system. Note that the problem information is already entered into the Data Section of the ABC worksheet.
Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Silven produces two models of cell phones with the following expected activity demands: 1. Determine the total overhead assigned to each product using the four activity drivers. 2. Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relatively inexpensive activities are allocated to the two expensive activities in proportion to their costs. 3. Using ABC as the benchmark, calculate the percentage error and comment on the accuracy of the reduced system. Explain why this approach may be desirable.
Assume the same information for Northern Defense as in Exercise 10-33, except that Northern Defense uses an 85% incremental unit-time learning model as a basis for predicting direct manufacturing labor-hours. (An 85% learning curve means b = -0.234465.) Q. Calculate the total variable costs of producing 2, 3, and 4 units.
The manufacturing process of a new product is very labor intensive. The learning curve percentage (LC) for the process is 90%. It took 30 hours with 15 workers together to produce the first product. The average labor cost including overhead expenses is about $20 per hour. (a) Estimate the labor cost (including overhead expenses) to produce the tenth product? (Hint: 2 steps. How long is T_10? How much is the cost?) (b) A new training program is intended to lower the learning-curve percentage by 10% (minus 10%). If the program is successful, what cost savings will be realized for the tenth unit? (Hint: How long is the new T_10? How much is the new cost? How much is the cost saving?)
Assume the same information for the Pacific Boat Company as in Problem 10-40 with one exception. This exception is that Pacific Boat uses a 90% incremental unit-time learning model as a basis for predicting direct manufacturing labor-hours in its assembling operations. (A 90% learning curve means b = -0.152004.) Q. Prepare a prediction of the total costs for producing the six PT109s for the Navy.
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.
Log Cabins Unlimited constructs vacation houses in the North Carolina mountains. The company has developed the following value chart: a. How much of the total time is value-added time? ______ hours b. How much total time is spent performing non-value-added activities? ______ hours c. Calculate the manufacturing cycle efficiency of the process. Note: Round the percentage to one decimal point (i.e. show 14.445% as 14.4%). ______%
Refer to the data given below.Required:1. Draw a scatter diagram and graph the company’s energy cost behavior using the visual-fit method.2. Predict the energy cost for a month in which 26,000 pints of applesauce are produced.3. What peculiarity is apparent from the scatter diagram? What should the cost analyst do?
A machine project is tasked to you, as shown below. Figure 1: Garbage Collection Robot Using Wireless Communication Technology (nevonprojects.com) 1. The actual machine will be mass-produced based on the machine in Figure 1. The tooling (fixtures, moulds & dies) is estimated at RM100,000 with expected product lifespan of 10,000 sets. Material cost is RM200 per set. Administration and overhead cost are at RM250,000 per year. Production planning per month for the machine is at 300 sets. Determine the machine cost per set.
Compute It uses activity-based costing. Two of Compute It's production activities are kitting (assembling the raw materials needed for each computer in one kit) and boxing the completed products for shipment to customers. Assume that Compute It spends $960,000 per month on kitting and $32,000 per month on boxing. Compute It allocates the following: • Kitting costs based on the number of parts used in the computer • Boxing costs based on the cubic feet of space the computer requires Suppose Compute It estimates it will use 400,000 parts per month and ship products with a total volume of 6,400 cubic feet per month. Assume that each desktop computer requires 125 parts and has a volume of 2 cubic feet. The predetermined overhead allocation rate for kitting is $2.40 per part and the predetermined overhead allocation rate for boxing is $5.00 per cubic foot. What are the kitting and boxing costs assigned to one desktop computer? (Round all calculations to the nearest cent.) O A. O B. O C. O…

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