Points of 1 The Pacific Boat Company which is under contract to US Navy.assemblent to the icon to view the donorintomi Peche Boat reports the cost information for the one Click the icon to outomation Read the Requirement 1. Prepare a prediction of the total costs for producing the PT100 for the Navy Begin by calculating the cumulative totale in labor hours Round the vidunt me for to the rest whole number Number of Individual unit time for Cumulative total time Xth unit: Labor-hours Labor hours 2 3 7 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 $5,919,493. 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 Cumulative total time: units per unit: Labor-hours Labor-hours 1 14,700 14,700 2 13,230 26,460 3 12,439 37,317 4 11,907 47,628 5 11,510 57,550 11,195 67,170 7 10.936 76,552 3 Read the requirements. Data Table x Cancel A B $ 1 Direct material cost $ 199,000 2 Direct manufacturing labor time for first boat 14.700 labor-hours 3. Direct manufacturing labor rate 42 per direct manufacturing labor hour 4 Variable manufacturing overhead cost $ 26 per direct manufacturing labor hour 5 other manufacturing overhead 20% of direct manufacturing labor costs 6 Tooling costs $ 279.000 7 Learning curve for manufacturing labor time per boat 90% cumulative average 8 "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 Using the formula for a 90% learning curve. = -0.152004 In 2 0.693147 Pacific Boat uses a 90% incremental unit-time learning model as a basis for predicting direct manufacturing labor-hours in its assembling operations. (A 90% learning curve means b= -0.152004.)