You Are a Cost Accountant for a Firm That Specializes

question 46

Essay

You are a cost accountant for a firm that specializes in "small" (under 10 billion dollars) defence contracts for specialty electronics products, such as fully portable, miniaturized CD-ROM imaging stations and global positioning transmitters/transponders. Your company is well respected in this field. One project up for competitive bids is a Field Service, Hands-Free, Individual Multi-Protocol Secure Communicator (a battlefield version of a cellular telephone, but built into each soldier's helmet, and containing necessary encryption technology). The Department of Defence wants 8 of these experimental devices to test their practicality. You have reviewed the contract specifications, and estimated that the first FSHFIMPSC should require 2350 hours, and that the product is subject to a 75% learning rate. All costs of the project (machine purchase, machine time, direct and indirect labour, and materials) have been bundled (allocated) into an hourly labour rate of $172 per hour. Determine the total project cost using the provided data.

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Definitions:

Panic Disorder

A mental health condition characterized by recurrent unexpected panic attacks and intense fear of experiencing another attack.

Nervous

Feeling anxious, worried, or apprehensive, often without a clear cause.

Terror

An intense, overwhelming fear, often experienced suddenly and with a high degree of psychological stress or discomfort.

Anxiety Sensitivity

A tendency to focus on one’s bodily sensations, assess them illogically, and interpret them as harmful.