Striker Auto is looking into their car manufacturing costs at its Kansas City Plant. Striker has recently received an order for 16 new custom roadsters and is evaluating its options for using two approaches to build these. Use the data table that follows to determine the total cost of assembling these 16 roadsters for each approach.

Transcribed Image Text:

Direct Materials Per Car Direct Assembly Labor time for first car Learning curve for assembly labor time per car Direct assembly labor cost Equipment related indirect manufacturing cost Material handling related indirect manufacturing cost Learning curve = 85% Learning curve = 90% Labor Intensive Assembly Method $20,000 1,000 labor hours 85% cum avg. time $15 per hour $6 per direct assembly labor hr 50% of direct material cost -0.234465 -0.152004 Machine Intensive Assembly Method $18,000 400 labor hours 90% increase unit time $15 per hour $22.5 per direct assembly labor hr 50% of direct material cost Direct Materials Per Car Direct Assembly Labor time for first car Learning curve for assembly labor time per car Direct assembly labor cost Equipment related indirect manufacturing cost Material handling related indirect manufacturing cost Learning curve = 85% Learning curve = 90% Labor Intensive Assembly Method $20,000 1,000 labor hours 85% cum avg. time $15 per hour $6 per direct assembly labor hr 50% of direct material cost -0.234465 -0.152004 Machine Intensive Assembly Method $18,000 400 labor hours 90% increase unit time $15 per hour $22.5 per direct assembly labor hr 50% of direct material cost

Answer rating: 100% (QA)

Cumulative assembly labour time Labour Intensive Assembly Method Machine Intensive Assembly Method D... View the full answer