Homework: Problem 8-35 Score: 0 of 10 pts P10-35 (similar to) Save lof1@oomplete) Score: 0%, 0 of 10 pts Question Help The Open Waters Company, which is under contract to the U.S. Navy, assembles troop deployment boats. As part of its research program, it completes the assembly of the first of a new model (PT 109) of deployment boats. The Navy is impressed with the PT109. It requests that Open Waters submit a proposal on the cost of producing another six PT 109s Open Waters reports the following cost information for the first PT109 assembled and uses a 90% cumulative average time learning model as a basis for forecasting direct manufacturing labor-hours for the next six PT10% (A 90% learning arve means b =-0.152004.) (Click the icon to view the cost information.) Requirements 1. Calculate predicted total costs of producing the six PT 109s for the Navy. (Open Waters will keep the first deployment boat assembled, costed at $1,461,400, as a demonstration model for potential customers.) What is the dollar amount of the difference between (a) the predicted total costs for producing the six PT109s in requirement 1, and (b) the predicted total costs for producing the six PT109s, assuming that there is no learning curve for direct manufacturing labor? That is, for (b) assume a linear function for units produced and direct manufacturing labor-hours. 2. Requirement 1. Calculate predicted total costs of producing the six PT109s for the Navy. (Open Waters will keep the first deployment boat assembled, costed at $1,461,400, as a demonstration model for potential customers.) Begin by determining the hours used to produce the six PT109s for the Navy. (Round your answers to the nearest whole number.) The total cumulative time in labor-hours for seven PT 109s is hours, there ore, the total tim eto produce six PT109s hours Data Table $199,000 Direct material Direct manufacturing labor time for first boat Direct manufacturing labor rate Variable manufacturing overhead cost Other manufacturing overhead Tooling costsa Learning curve for manufacturing labor time per boat 14,900labor-hours $46per direct manufacturing labor-hour $20per direct manufacturing labor-hour 25% of direct manufacturing labor costs $279,000 90% cumulative average timeb a Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat In 0.90 -0.105361 0.693147 b Using the formula for a 90% learning curve , b #-0.1 52004 In 2 Print Done