United Research Associates (URA) had received a contract to produce two units of

Question

United Research Associates (URA) had received a contract to produce two units of a new cruise missile guidance control. The first unit took 5,000 hours to complete and cost $30,000 in materials and equipment usage. The second took 4,500 hours and cost $24,000 in materials and equipment usage. Labor cost is charged at $20 per hour. The prime contractor has now approached URA and asked to submit a bid for the cost of producing another 20 guidance controls. Use Exhibit 6.4 and Exhibit 6.5 a. What will the last unit cost to build? (Round your answer to the nearest dollar amount.) Cost of last unit $ b. What will be the average time for the 20 missile guidance controls? (Round your answer to the nearest whole number.) Average timehours c. What will the average cost be for guidance control for the 20 in the contract? (Round your answer to the nearest dollar amount.) Average costS

Explanation / Answer

Solution :

A : Last unit cost to build : $ 11,219

B : Average time : 1779 hours

C : Average Cost : $ 40,321

Unit Hours Material and Equipment cost Labor Cost Total Cost 1 4050 19200 81000 100200 2 3645 15360 72900 88260 3 3281 12288 65610 77898 4 2952 9830 59049 68879 5 2657 7864 53144 61008 6 2391 6291 47830 54121 7 2152 5033 43047 48080 8 1937 4027 38742 42769 9 1743 3221 34868 38089 10 1569 2577 31381 33958 11 1412 2062 28243 30305 12 1271 1649 25419 27068 13 1144 1319 22877 24196 14 1029 1056 20589 21645 15 927 844 18530 19375 16 834 676 16677 17353 17 750 540 15009 15550 18 675 432 13509 13941 19 608 346 12158 12504 20 547 277 10942 11219

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