Written Assignment

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 Method

Machine Intensive Assembly Method

Direct Materials Per Car



Direct Assembly Labor time for first car

1,000 labor hours

400 labor hours

Learning curve for assembly labor time per car

85% cum avg time

90% incr unit time

Direct assembly labor cost

$15 per hour

$15 per hour

Equipment related indirect manufacturing cost

$6 per direct assembly labor hr

$22.5 per direct assembly labor hr

Material handling related indirect manufacturing cost

50% of direct material cost

50% of direct material cost

Learning curve = 85%

– 0.234465

Learning curve = 90%

– 0.152004

Create a table in Word to insert your calculations and submit the completed table for this module’s assignment.