Company, which is under contract to the U.S. Navy, assembles troop SVP Boat reports the following cost information for the first PT109 assembled. deployment boats U (Click the icon to view the cost information) Click the icon to view the additional information) Read the requirements Requirement 1. Prepare a prediction of the total costs for producing the six Pi 10 for the Navy Begin by calculating the cumulative total time in labor hours. (Round the individual unit time for Xth unit to the nearest whole number) Number of Individual unit time for Cumulative total time: units Xth unit: Labor-hours Labor-hours 1 2 3 4 5 Data table ser Direct materials cost $ 196,000 per PT109 Direct manufacturing labor time for first boat 15,300 direct manufacturing labor-hours Learning curve for manufacturing labor time per boat 90% cumulative average time! Direct manufacturing labor costs $ 44 per direct manufacturing labor-hour Variable manufacturing overhead costs $ 27 per direct manufacturing labor-hour Other manufacturing overhead 15% of direct manufacturing labor costs Tooling costs $ 276,000 1 In 0.90 -0.105361 Using the formula for a 90% learning curve, b = = -0.152004 In 2 0.693147 2 Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat. More info As part of its research program, it completes the assembly of the first of a new model (PT109) of deployment boats. The Navy is impressed with the PT109. It requests that SVP Boat submit a proposal on the cost of producing another six PT109s. SVP Boat reports the following cost information for the first PT109 assembled. Requirements 1. Prepare a prediction of the total costs for producing the six PT109s for the Navy. 2. Compare the cost predictions from requirement 1 (incremental unit-time learning model) with the cost predictions based on a cumulative average-time learning model which has total costs of $6,171,655. Why are the predictions different? How should SVP Boat decide which model it should use? Cumulative average-time learning model's cumulative average time per unit and cumulative total time: Number of Cumulative average time units per unit: Labor-hours Cumulative total time: Labor-hours 15,300 1 15,300 2 27,540 3 38,841 13,770 14947 12,393 11,980 4 49,572 5 6 11,652 59,900 69,912 79,674 7 11,382