The Open Waters 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 (PT109) of deployment boats. The Navy la impressed with the PT109. It requests that Open Waters submit a proposal on the cost of producing another six PT109s. Open Waters reports the following cost information for the first PT109 assembled and uses a 90% cumulative average-time learning modal as a basis for forecasting direct manufacturing labor-hours for the next six PT109s. (A 90% leaming curve means b -0.152004) (Click the loon to view the cost information.) Requirements 1. 2. Calculate predicted total costs of producing the six PT109s for the Navy. (Open Waters will keep the first deployment boat assembled, costed at $1,469,200, as a demonstration model for potential customers.) What is the dollar amount of the difference between (a) the predicted total costs for producing the six PT100s in requirement 1, and (b) the predicted total costs for producing the six PT109s, 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 Requirement 1. Calculate predicted total costs of producing the six PT109s for the Navy (Open Waters will keep the first deployment boat assembled, costed at $1,489,200, as a demonstration model for potential customers.) Begin by determining the hours used to produce the six PT109s for the Navy (Round your answers to the nearest whole number) The total cumulative time in labor-hours for seven PT 100s 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) Direct materas Direct manufacturing labor Vanatie manufacturing overhead Other manufacturing overhead Total cos Requirement 2. What is the dollar amount 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 PT 109, assuming that there is no leaming curve for direct manufacturing labor? That is, a for (b) assume a linear function for units produced and direct manufacturing labor-hours Begin by calculating the predicted total costs for producing the six PT109s, assuming that there is no learning curve for direct manufacturing labor. (Round your answer Data table Direct materials Dired manufacturing labor Viable manufacturing overhead Other manufacturing overhed Total The difference between (a) requirement 1's predicted total costs and (b) predicted total costs with no leaming curve is 5 Direct material $205,000 Direct manufacturing labor time for first boat 15,300 labor-hours Direct manufacturing labor rate Variable manufacturing overhead cost Other manufacturing overhead Tooling costs $36 per direct manufacturing labor-hour $28 per direct manufacturing labor-hour 20% of direct manufacturing labor costs $285,000 Leaming curve for manufacturing labor time per boat 90% cumulative average time Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat Using the formula for a 90% learning curve, b In 0.90 In 2 -0.105361 0.693147 -0.152004