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The Pacific Boat Company, which is under contract to the US Navy, assembles troop deployment boats. As part of its research program completes the
The Pacific Boat Company, which is under contract to the US Navy, assembles troop deployment boats. As part of its research program completes the assembly of the first of a new model (100) of deyman boats. The Navy impressed with the PT100, it requests that Pacific Boat submit a proposal on the cost of producing another six PT100s. Pacific Boat ports the following cost infomation for the first PT109 assembled and uses a 10% cumulative average timing model as a basis for forecasting direct manufacturing labor-hours for the next PT100. (A 90% leaming curve means b-0.152004) Olck the loon to view the cost information) Read the requirements Requirement 1. Calculate predicted total costs of producing the six PT100s for the Nevy. (Pacific Boat will keep the first deployment boat assembled, costed at $1,477 800, demonstration model for potential customers) Begin by detaining the hours used to produce the six PT100s for the Navy (Round your answers to the nearest whole number) The total cumulative time in labor-hours for seven P10 therefore, the al sme to produce six PT100 Now calculate the predicted total costs of producing the six PT100s (Round your answers to the nearest whole) Direct materials Direct manufacturing laber Variatie manufacturing overhead Other manufacturing overhead T Data table Direct material cost $ 100.000 2 Direct manufacturing labor time for first boat Direct manufacturing labor rate 14.700 bor hours 3 42 per direct manufacturing borbou S 25 per direct manufacturing labor-hour 20% of direct manufacturing labor costs $279,000 Learning curve for manufacturing labor e per bost 90% ver Tooling can be reused at no extra cost because at of its cost has been assigned to the first deployment boat Using the formula for a 50% learning curve, bi 0900105361 0093147 -0.152004 Requirements 1. Calculate predicted total costs of producing the six PT109s for the Navy Pafe Boat will keep the first deployment boat assembled, costed at $1,477,000, as a demonstration model for potential customers) 2. What is the dollar amount of the difference between ca) the predicted total costs for producing the six PT1004 in requirement 1, and thithe predicted total costs for producing the six PT100s, assuming that there is no leaning curve for drect manufacturing labor? That is, e assume a Inear function for units produced and direct manufacturing labor-hours 5 Other manufacturing overhead Tooling costs
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