The Eastern 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 rst of a new model (PT109) of deployment boats. The Navy is impressed with the PT109. It requests that Eastern Shore submit a proposal on the cost of producing another six PT1093. Eastern Shore reports the following cost information for the rst PT109 assembled and uses a 90% cumulative average-time learning model as a basis for forecasting direct manufacturing labor-hours for the next six PT109s. (A 90% learning curve means b = - 0.152004.) @ (Click the icon to View the cost information.) Read the @uirements. c:) Requirement 1. Calculate predicted total costs of producing the six PT109s for the Navy. (Eastern Shore will keep the rst deployment boat assembled, costed at $1,488,600, as a demonstration model for potential customers.) Begin by determining the hours used to produce the six PT109s for the Navy. (Round intermediary and final answers to the nearest whole number.) The total cumulative time in labor- hours; therefore, the total hours for seven PT109s is |:| time to produce six PT109s is |:| hours. Requirements 1. Calculate predicted total costs of producing the six PT'IOQS for the Navy. (Eastern Shore will keep the rst deployment boat assembled, costed at $1 ,488,600, as a demonstration model for potential customers.) 2. What is the dollar amount of the difference between (a) the predicted total costs for producing the six PT1095 in requirement 1, and (b) the predicted total costs for producing the six PT1093, assuming that there is no learning curve for direct manufacturing labor? That is, for (b) assume a linear function for units produced and direct manufacturing labor-hours. Direct materials cost $ 206,000 per PT109 Direct manufacturing labor time for first boat 15,100 direct manufacturing labor-hours Learning curve for manufacturing labor time per boat 90% cumulative average time1 Direct manufacturing labor costs $ 44 per direct manufacturing labor-hour Variable manufacturing overhead costs $ 22 per direct manufacturing labor-hour Other manufacturing overhead 15% of direct manufacturing labor costs Tooling costs2 $ 286,000 1 Using the formula for a 90% learning curve, b = In 090 = M = 0.152004 In 2 0.693147 2 Tooling can be reused at no extra cost because all of its cost has been assigned to the rst deployment boat