1. Lockheed Martin Corporation is optimizing its COGS for a new military aircraft program:

Requirements:

• Calculate the COGS using the formula: COGS = Direct Materials + Direct Labor + Factory Overhead.
• COGS Table with the following values:
  • Direct Materials: $10,000,000
  • Direct Labor: $5,000,000
  • Factory Overhead: $3,000,000

• Analyze the impact of overhead allocation methods (e.g., traditional vs. activity-based costing) on COGS.
• Recommend strategies to reduce COGS by 15% through advanced manufacturing technologies.
• Justify how reducing COGS aligns with Lean principles in aerospace manufacturing.
• Present a financial projection illustrating potential cost savings for Lockheed Martin.

COGS Table:

Category	Amount ($)
Direct Materials	$10,000,000
Direct Labor	$5,000,000
Factory Overhead	$3,000,000
Total COGS	$18,000,000