Data table Requirements Direct materials cost Direct manufacturing labor time for first boat Learning curve for manufacturing labor time per boat Direct manufacturing labor costs $ 203,000 per PT109 14,900 direct manufacturing labor-hours 90% cumulative average time" 39 per direct manufacturing labor-hour $ Variable manufacturing overhead costs $ 28 per direct manufacturing labor-hour Other manufacturing overhead Tooling costs? 25% of direct manufacturing labor costs $ 283,000 1 In 0.90 Using the formula for a 90% learning curve, b = In 2 -0.105361 0.693147 =-0.152004 2 Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat. Print Done 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 $6,029,765. Why are the predictions different? How should Pacific 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 per unit: Labor-hours Cumulative total time: units Labor-hours 1 14,900 14,900 2 13,410 26,820 3 12,608 37,824 4 12,069 48,276 5 11,666 58,330 6 11,348 68,088 7 11,085 77,595 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 Pacific Boat submit a proposal on the cost of producing another six PT109s. Pacific Boat reports the following cost information for the first PT109 assembled. Print Done Clear all Check answer