Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help The Pacific Shore Company, which is under contract to the U.S. Navy, assembles troop deployment boats. As part of its rosearch program, it

please help
image text in transcribed
image text in transcribed
image text in transcribed
The Pacific Shore Company, which is under contract to the U.S. Navy, assembles troop deployment boats. As part of its rosearch program, it completes the assemby of the frst of a now model (PT 109) of deployment boats. The Navy is impressed with the PT109, it requesis that Pacific Shore submit a proposal on the cost of producing another six PT togs. Pacific Shore reportil the following cost information for the first PT 109 assembled and uses a 90% cumulative averege-time leaming model as a basis for forecasting direct manufacturing labor-hours for the next nix. PT109s. (A 90:4 learning curve means b =0.152004 ) ) (Click the icon to view the cost information) Riead the requiemints Requirement 1. Calculate predicted total costs of producing the six. PT 109s for the Navy. (Pacifc Shore will keep the first deployment boat assembied, cosied at \$1,426, 700, as a demonstration model for potential custamen-) Begin by determining the hours used to produce the six PT 109s for the Navy, (Round inlermedary and final anewers to the nearest wholio number) The fotal cumulative time in labor thours for seven PT109s is hours, therdiore, the fotal time to produce six PT109s is noure. The Pacific Shore Compary, which is under contract to the U.S. Navy, assembles troop doployment boats. As part of its research program, it completes the assembly of the firtt of a now model (PT 109) of deployment boats. The Navy is impressed with the PT 109. it requests that Pacific Shore submit a proposal on the cost of producing another six PT 109s. Pacific Shore reporis following cost information for the first PT 109 assembled and uses a 90% cumulative avecage-fime learning model as a basis for forecasting direct manufacturing labor-hourn for the next six Pead th Data table Direct materials cost 5204,000 per PT 109 Regulre model fo Direct manufacturing labor time for first boat 14,900 drect manufactuning labor-hours Learning curve for manutacturing labor time per boat 9086 cunviative average time" Direct manufacturing labor costs (5) 43 per diroct manutacturing labor-hour Variable manufacturing overhead costs 5220 per direct manufacturing labor hour Other manutacturing overhead Tooling costs? \$. 284,000 Using the formula for a 90% learning curvo, b=ln2ln0.90=0.6931470.105361=0.152004 2. Tocing can be reused at no extra cost because all of its cost has been aspored to the first deployment boat. The Pacific Shore 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 Pacfic Shore submit a proposal on the cost of producing anocher six PT109s. Pacific Shore rop following cost information for the first PT 109 assembied and uses a 90% cumulasve avemage-time leaming model as a basis for forecasting direct manufacturing labor-hours for the next six PT109s. (A SO\% learning curve means b=0.152004.) IIt (Cick the icon to view the oost information.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions