Molton Motors makes large turbo engines. The company manufactured a prototype engine for Apex Corporation. Cost data on that engine follow: Direct Material $22,000 Direct labor (2,000 hrs @ $20 per hour) 40,000 Variable Mfg Overhead (based on DL cost) 24,000 Total cost $86,000Based on experience, Molton uses an 80% learning curve (-0.3219) to calculate costs. Apex wants a quote on 15 additional motors (Molton will keep the prototype).Calculate the variable cost of producing these fifteen motors.
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