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Find what will be the total expected unit cost for aircraft

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Reference no: EM132533426

Eagle Airplane Company has built a new model jet aircraft, which it intends to sell to high net worth clients. This aircraft required 20,000 hours to complete. Eagle believes an incremental unit learning model best reflects the company's production efficiency.

Eagle's manufacturing costs for the second aircraft are presented below.

Direct labor                    $140 per direct labor hour

Variable overhead             120 per direct labor hour

Fixed overhead                  200000 per unit

Materials                           90000 per unit

Eagle just received a contract to make three more identical aircraft (a total of four were made). The total labor cost for the second unit was $2,240,000.

Question 1: What will be the total expected unit cost for the 4th aircraft? (Please round to the closest number)

Option A. $3,618,000

Option B. $4,502,000

Option C. $3,328,000

Option D. $ 4,212,000

Reference no: EM132533426

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