What will be the total expected unit cost for four aircrafts

Assignment Help Managerial Accounting
Reference no: EM132533416

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 a cumulative average 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 four aircrafts? (Please round to the closest number)

Option A. $4,502,000

Option B. $3,328,000

Option C. $4,212,000

Option D. $3,618,000

Reference no: EM132533416

Questions Cloud

Example of cyber terrorism : Using the Web or other resources, research an example of Cyber Terrorism.
Understand how the world is changing : "The basis for Strategic Management is to understand how the world is changing, as well as how those changes might affect the organization".
What amount of loss should Rey deduct : The partnership of Spencer and Rey realized an ordinary loss of $52,000 and dividend income of $10,000, What amount of loss should Rey deduct
What is the direct labor efficiency variance : The job consisted of 6,400 units and was completed in 24,600 hours at a total labor cost of $312,900. What is the direct labor efficiency variance?
What will be the total expected unit cost for four aircrafts : What will be the total expected unit cost for four aircrafts? Eagle Airplane Company has built a new model jet aircraft, which it intends to sell to high net
Record necessary journal entries applying the accrual basis : During 2017 BEMP corporation sells for cash 1,300 computers at $5,500 per unit. Record necessary journal entries applying the accrual basis
What is big data analytics : How does prescriptive analytics relate to descriptive and predictive analytics? What is Big Data analytics? How does it differ from regular analytics?
What is the cash flow to creditors : Prescott Football Manufacturing had the following operating results for 2019: sales = $29,924; What is the cash flow to creditors
Computer and internet security policy : Your job is to develop a computer and internet security policy for the organization

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Federal income tax liability

Mike and Nancy's AGI was $175,000 and their actual federal income tax liability was $29,000 -  Federal income tax withheld from salary

  Evaluate the firm pricing policy

Use activity-based costing to estimate the cost of preparing A wage and salary tax return and A business tax return. evaluate the firm's pricing policy

  What is the target cost for george carlin

What is the target cost? George Carlin is considering the production of a new line of jeans. Based on preliminary market research

  Determine number board feet of lumber

Determine number board feet of lumber that Towson Company should buy in June. (Round & enter final answers to the nearest whole number.)

  Effects of all cash flows affect the balances

What, then, is the need for an additional financial statement that reports cash flows?

  Calculate the total cost of each trip

Calculate the total cost of each trip, the cost per person for each trip, and the cost per day for each trip, using the activity-based costing system.

  Provide a definition of performance indicators

BSBMGT502 Manage People Performance Assignment, Metro Institute, Australia. Provide a definition of performance indicators

  Determine the total cost per unit of the three products

Peabody uses a traditional costing system, with overhead allocated based on direct labor hours. Compute the total cost per unit of the three products.

  Compute the allocate overhead costs to each month

Allocate overhead costs to each month using the overhead rate computed, Calculate a predetermined overhead rate based on the number.

  Assignment on master budget-partial

Jonas Product produces shoes. The projected sales for the first quarter of the coming year and the beginning and ending inventory data are as follow:

  Calculate the cost of budgeted ending inventory

Andrews Company manufactures, Calculate the cost of budgeted ending inventory. Round your answer to the nearest dollar. Calculate the unit product cost.

  Summarise the unethical accounting practices utilised by abc

Summarise the unethical accounting practices utilised by ABC Learning's accountants and state which of the principles set out in the Australian Accounting

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd