Requirement 1. Prepare a prediction of the total costs for producing the six PT109s for the Navy. Begin by calculating the cumulative total time in labor-hours. (Round the individual unit time for Xth unit to the nearest whole number.) Number of Individual unit time for Xth unit: Labor-hours Cumulative total time: Labor-hours units Data table 1 2 3 4 5 6 7 Direct materials cost $ 207,000 per PT109 Direct manufacturing labor time for first boat 14,900 direct manufacturing labor-hours Learning curve for manufacturing labor time per boat 90% cumulative average time Direct manufacturing labor costs $ 38 per direct manufacturing labor-hour Variable manufacturing overhead costs $ 29 per direct manufacturing labor-hour Other manufacturing overhead 25% of direct manufacturing labor costs Tooling costs $ 287,000 In 0.90 -0.105361 Using the formula for a 90% leaming curve, b = In 2 **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 Help me solve this Etext pages Get more help Question Viewer 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 $6,038,091. 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 14,900 14,900 13,410 26,820 12,608 37,824 O AWN 4 12,069 48,276 11,666 58,330 68,088 11,348 11,085 77,595 Requirement 1. Prepare a prediction of the total costs for producing the six PT109s for the Navy. Begin by calculating the cumulative total time in labor-hours. (Round the individual unit time for Xth unit to the nearest whole number.) Number of Individual unit time for Xth unit: Labor-hours Cumulative total time: Labor-hours units Data table 1 2 3 4 5 6 7 Direct materials cost $ 207,000 per PT109 Direct manufacturing labor time for first boat 14,900 direct manufacturing labor-hours Learning curve for manufacturing labor time per boat 90% cumulative average time Direct manufacturing labor costs $ 38 per direct manufacturing labor-hour Variable manufacturing overhead costs $ 29 per direct manufacturing labor-hour Other manufacturing overhead 25% of direct manufacturing labor costs Tooling costs $ 287,000 In 0.90 -0.105361 Using the formula for a 90% leaming curve, b = In 2 **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 Help me solve this Etext pages Get more help Question Viewer 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 $6,038,091. 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 14,900 14,900 13,410 26,820 12,608 37,824 O AWN 4 12,069 48,276 11,666 58,330 68,088 11,348 11,085 77,595
