As a manager have been asked to estimate the total cost of producing 20 engines in your company. Current engine blocks have an output of 150-hp per engine. 5 years ago, a similar 180-hp engine block cost was 8150 KD. Beside that due to extreme competition in the industry, the cost of an engine block has decreased with 11% only for 2 intervals of time throughout this period. Total cost consists of engine block cost, direct labor cost and other labor-related costs. Pertinent data are as follows: Direct labor cost per 25 KD per hour hour Factory overhead 120% of direct labor Packing costs 70% of direct labor Maintenance costs 10% of engine cost Cost-capacity factor 0.75 Past experience has shown that an 85% learning curve applies to the labor required producing these engines. Maintenance cost will be paid only once at the beginning of the second year. Use the estimated time to complete the 10th engine for the purpose of estimating the direct labor cost and multiply by the number of engines to find total cost. The time to complete the first engine has been estimated to be 85 hours. 1. What is the cost of the engine block? 2. What is the direct labor cost? 3. What is the total cost of the required production for all engines