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Striker Auto is looking into their car manufacturing costs at its Kansas City Plant.
Striker Auto is looking into their car manufacturing costs at its Kansas City Plant. Striker has recently received an order for 16 new custom roadsters and is evaluating its options for using two approaches to build these. Use the data table that follows to determine the total cost of assembling these 16 roadsters for each approach.Labor Intensive Assembly MethodMachine Intensive Assembly MethodDirect Materials Per Car$20,000$18,000Direct Assembly Labor time for first car1,000 labor hours400 labor hoursLearning curve for assembly labor time per car85% cum avg time90% incr unit timeDirect assembly labor cost$15 per hour$15 per hourEquipment related indirect manufacturing cost$6 per direct assembly labor hr$22.5 per direct assembly labor hrMaterial handling related indirect manufacturing cost50% of direct material cost50% of direct material costLearning curve = 85%- 0.234465Learning curve = 90%- 0.152004[important]Create a table in Word to insert your calculations and submit the completed table for this module's assignment.