Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

show work Assume that the Pacifo Shore Company, which is under contract to the Navy, assembles troop deployment boats. As part of its resiearch program,

show work
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Assume that the Pacifo Shore Company, which is under contract to the Navy, assembles troop deployment boats. As part of its resiearch program, it complotes the assombly of the first of a new model (PT 109) of deployment boats. The Navy is impressed with the PT 100 . It requesis that Pactic Shore subrrit a proponal on the cose of producing another six PT 109s. Pacific Shore reports the following cost information for the first PT100 assembled and uses a 90% cumulative average-time leaming model as a basis for forecasting direct manufacturing labour-hours for the next six PT 109s. (A 90\% learning curve means b = 0.152004 ) (Click the icon to view the cost information.) Required Requirement 1. Calculate predictedJotal costs of producing the six PT109s for the Navy. (Pacific Shore will keep the first depioyment boat assembled, costed at $1,482,300, as a demonstration model for potential customers.) Begin by determining the hours used to produce the six PT 109s for the Navy. (Round your answers to the nearest whole number ) The total cumulative time in labour-hours for seven PT 109s is hours; therefore, the total time to produce six PT109s is hours. Now, calculate the predicted total costs of producing the six PT109s. (Round your answers to the nearest whole dollar.) Now, calculate the predicted total cods of producing the six PT109s. (Round your answers to the nearest whole dollar.) Requirement 2. What is the dollar amount of the difference between (a) the predicted total costs for producing the six PT109s in rev Requirement 2. What is the dollar a fiount of the ditference between (a) the predicted iotal costs for producing the six PT 109s in requirement 1 , and (b) the predicted totat costs for producing the six PT 109s, assuming that there is no leaming curve for direct manufacturing labour? That is, for (b) assume a linear functic for units produced and direct manufacturing labour-hours. Begin by calculating the predicted total costs for producing the six PT109s, assuming that there is no learning curve for direct manufacturing labour. (Round your answers to the nearest whole dollar.) answers to the nearest whole dollar. I The difference between (a) requirement 1's predicted total costs and (b) predicted tofal costs with no learning curve is \$ Required 1. Calculate predicted total costs of producing the six PT109s for the Navy. (Pacific Shore will keep the first deployment boat assembled, costed at $1,482,300, as a demonstration model for potential customers.) 2. What is the dollar an. sunt 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 leaming curve for direct manufacturing labour? That is, for (b) assume a linear function for units produced and direct manufacturing labour-hours. a Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat. b Using the formula for a 90% learning curve, b =ln2ln0.90=0.6931470.105361=0.152004

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Cornerstones of Managerial Accounting

Authors: Mowen, Hansen, Heitger

3rd Edition

324660138, 978-0324660135

More Books

Students also viewed these Accounting questions