Question: A company estimates the variable cost of producing each unit of a product as follows: Direct materials $ 3,500 per unit Direct labor $ 35

A company estimates the variable cost of producing each unit of a product as follows:
Direct materials
$ 3,500 per unit
Direct labor
$ 35 per hour
Variable overhead is $600 per unit plus 80% of direct labor costs.
The first unit requires 200 hours to make. Labor time is subject to an 80% incremental-unit learning curve (Y = aX-0.322)
What is the estimated cost of making 2 units?

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