The Helicopter Division of Blue Sky, Inc., is examining helicopter assembly costs at its Delaware plant....

 

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The Helicopter Division of Blue Sky, Inc., is examining helicopter assembly costs at its Delaware plant. It has received an initial order for eight of its new land-surveying helicopters. Blue Sky can adopt the labor-intensive method or the machine-intensive method to assemble the helicopters as per the data shown in the follow table. Labor Intensive Method Machine Intensive $40,000 2,000 labor hours 85% cumulative average Method Direct Material Cost per Helicopter Direct Assembly Labor Time for First Helicopter Assembly labor time learning curve per Helicopter average Direct assembly labor cost Equipment related Overhead Cost $36,000 800 labor hours 90% cumulative $30 per hour $12 per DLH 50% of Direct Material Cost $30 per hour $45 per DLH 50% of TASK TWO: What is the total cost of assembling the first eight helicopters under a) The labor-intensive method b) The machine intensive method Material Handling Overhead Cost Direct Material Cost The company is requested to prepare a bid for the first eight helicopters. TASK ONE: 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 The Helicopter Division of Blue Sky, Inc., is examining helicopter assembly costs at its Delaware plant. It has received an initial order for eight of its new land-surveying helicopters. Blue Sky can adopt the labor-intensive method or the machine-intensive method to assemble the helicopters as per the data shown in the follow table. Labor Intensive Method Machine Intensive $40,000 2,000 labor hours 85% cumulative average Method Direct Material Cost per Helicopter Direct Assembly Labor Time for First Helicopter Assembly labor time learning curve per Helicopter average Direct assembly labor cost Equipment related Overhead Cost $36,000 800 labor hours 90% cumulative $30 per hour $12 per DLH 50% of Direct Material Cost $30 per hour $45 per DLH 50% of TASK TWO: What is the total cost of assembling the first eight helicopters under a) The labor-intensive method b) The machine intensive method Material Handling Overhead Cost Direct Material Cost The company is requested to prepare a bid for the first eight helicopters. TASK ONE: 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

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TASK ONE a The laborintensive method Direct assembly labor time for the first helicopter 2000 labor hours Learning curve per helicopter 85 cumulative average To calculate the direct assembly labor tim... View the full answer