The Helicopter Division of GLD, Inc., is examining helicopter assembly costs at its Indiana plant. It has received an initial order for eight of its new land-surveying helicopters. GLD can adopt the labor-intensive method or the machine-intensive method to assemble the helicopters as per the data shown in the following table:

Required:

1. How many direct-assembly labor-hours are required to assemble the first eight helicopters under 

(a) The labor-intensive method 

(b) The machine-intensive method?
2. What is the total cost of assembling the first eight helicopters under 

(a) The labor-intensive method 

(b) The machine-intensive method?

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Home Insert Page Layout A Formulas 1 2 Direct material cost per helicopter 3 Direct-assembly labor time for first helicopter 4 Learning curve for assembly labor time per helicopter 5 Direct-assembly labor cost 6 Equipment-related indirect manufacturing cost 7 Material-handling-related indirect manufacturing cost 8 9 10 *Using the formula (page 402), for an 85% learning curve, b 11 12 13. 14 15 **Using the formula (page 403), for a 90% learning curve, b = 16 17 Review View с Labor-Intensive Assembly Method $ $ B Data $ 40,000 2,000 labor-hours 85% cumulative average-time* 30 per hour 12 per direct-assembly labor-hour 50% of direct material cost In 0.85 In 2 In 0.90 In 2 -0.162519 0.693147 -0.105361 0.693147 =-0.234465 -0.152004 E Machine-Intensive Assembly Method D $36,000 $ $ 800 labor-hours 90% incremental unit-time** 30 per hour 45 per direct-assembly labor-hour 50% of direct material cost