2. Which of the following is the better model for predicting the direct labor hours required to build ships in the future? Explain briefly (at least 2 reasons) and show scatterplot and regression outputs. (a) A regression of direct labor hours (y = column B) on number of units (x = column A). (b) A regression of the natural log of direct labor hours [y = ln(column B)] on the natural log of unit numbers (x=ln(column A)]. The answer to question 2 should provide you with a learning-curve function that will allow you to predict the labor hours required to build the next ships. 3. Suppose Bond Voyage plans to build 5 ships next year (ships #21 through 25), and direct labor wages are now holding steady at $34 an hour. Answer questions (a) and (b) below, and provide the spreadsheet that you used to calculate these answers. (a) How many direct labor hours will be required for each of these five ships? (b) What will the total direct labor costs be for these five ships? (c) Using the model of overhead costs that you chose in question 1, what will overhead costs be for these five ships? A B D E 1 Unit 2 1 3 2 4 3 5 4 6 5 6 7 8 DLHs per unit 5000 4360 3926 3283 3258 3580 3043 3155 3029 2737 2509 2803 2747 7 9 8 10 9 11 10 11 Wages/hr $12 $12 $12 $16 $16 $16 $18 $18 $20 $20 $25 $25 $25 $30 $30 $30 $30 $34 $34 $34 Labor cost Labor-related MOH 60,000 $22,191 52,321 $19,006 47,113 $17,406 52,533 $15,149 52,120 $14,924 57,281 $16,349 54,768 $13,657 56,794 $14,340 60,572 $13,697 54,746 $12,619 62,714 $10,698 70,068 $12,076 68,671 $13,735 74,337 $11,271 84,986 $12,423 75,713 $11,870 73,616 $10,744 89,812 $11,305 87,020 $11,510 84,000 $10,956 12 12 13 14 15 13 14 15 2478 2833 16 17 18 16 2524 17 18 19 2454 2642 2559 2471 20 19 20 21 22 2. Which of the following is the better model for predicting the direct labor hours required to build ships in the future? Explain briefly (at least 2 reasons) and show scatterplot and regression outputs. (a) A regression of direct labor hours (y = column B) on number of units (x = column A). (b) A regression of the natural log of direct labor hours [y = ln(column B)] on the natural log of unit numbers (x=ln(column A)]. The answer to question 2 should provide you with a learning-curve function that will allow you to predict the labor hours required to build the next ships. 3. Suppose Bond Voyage plans to build 5 ships next year (ships #21 through 25), and direct labor wages are now holding steady at $34 an hour. Answer questions (a) and (b) below, and provide the spreadsheet that you used to calculate these answers. (a) How many direct labor hours will be required for each of these five ships? (b) What will the total direct labor costs be for these five ships? (c) Using the model of overhead costs that you chose in question 1, what will overhead costs be for these five ships? A B D E 1 Unit 2 1 3 2 4 3 5 4 6 5 6 7 8 DLHs per unit 5000 4360 3926 3283 3258 3580 3043 3155 3029 2737 2509 2803 2747 7 9 8 10 9 11 10 11 Wages/hr $12 $12 $12 $16 $16 $16 $18 $18 $20 $20 $25 $25 $25 $30 $30 $30 $30 $34 $34 $34 Labor cost Labor-related MOH 60,000 $22,191 52,321 $19,006 47,113 $17,406 52,533 $15,149 52,120 $14,924 57,281 $16,349 54,768 $13,657 56,794 $14,340 60,572 $13,697 54,746 $12,619 62,714 $10,698 70,068 $12,076 68,671 $13,735 74,337 $11,271 84,986 $12,423 75,713 $11,870 73,616 $10,744 89,812 $11,305 87,020 $11,510 84,000 $10,956 12 12 13 14 15 13 14 15 2478 2833 16 17 18 16 2524 17 18 19 2454 2642 2559 2471 20 19 20 21 22
