Question list $,K$

The Blue Seas 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 PT$109.$ It requests that Blue Seas submit a proposal on the cost of producing another six PT$109$s$.$ Blue Seas reports the following cost information for the first PT$109$ assembled and uses a $90\%$ cumulative average$-$time learning model as a basis for forecasting direct manufacturing labor$-$hours for the next six PT$109$s$.($A $90\%$ learning curve means $b=-0\mathrm{.}152004.)$

Question $1($Click the icon to view the cost information.$)$

Read the requirements.

Question $2$

Question $3$

Requirement $1.$ Calculate predicted total costs of producing the six PT$109$s for the Navy. $($Blue Seas will keep the first deployment boat assembled, costed at $$1,508,300,$ as a demonstration model for potential customers.$)$

Begin by determining the hours used to produce the six PT$109$s for the Navy. $($Round intermediary and final answers to the nearest whole number.$)$

Question $4$

The total cumulative time in labor$-$hours for seven PT$109$s is hours; therefore, the total time to produce six PT$109$s is $|$hours$.$

Data table

Direct materials cost

Direct manufacturing labor time for first boat Learning curve for manufacturing labor time per boat Direct manufacturing labor costs

Variable manufacturing overhead costs Other manufacturing overhead Tooling costs ${?}^{2}1$ Using the formula for a $90\%$ learning curve, $b=\frac{ln0\mathrm{.}90}{ln2}=\frac{-0\mathrm{.}105361}{0\mathrm{.}693147}=-0\mathrm{.}152004$

$2$ Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat.

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Etext pages

Get $n$

$$207,000$ per PT$109$

$14,700$ direct manufacturing labor$-$hours $90\%$ cumulative average time ${?}^1$

$ $42$ per direct manufacturing labor$-$hour

$ $27$ per direct manufacturing labor$-$hour $15\%$ of direct manufacturing labor costs $$287,000$

$$287,000$