The Pacific Boat Company, which is under contract to the U.S. Navy, assembles troop deployment boats. (Click the icon to view the additional information.) More info 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 Cumulative total time: units Xth unit: Labor-hours Labor-hours 1 2 3 4 5 6 7 As part of its research program, it completes the assembly of the first of a new model (PT109) of deployment boats. The Navy is impressed with the PT109. It requests that Pacific Boat submit a proposal on the cost of producing another six PT109s. Pacific Boat reports the following cost information for the first PT109 assembled. ***** - X Pacific Boat reports the following cost information for the first PT109 assembled. (Click the icon to view the cost information.) Read the requirements. Requirements . 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 leaming model) with the cost predictions based on a cumulative average-time learning model which has total costs of $5,854,225. Why are the predictions different? How should Pacific Boat decide which model it should use? Cumulative average-time leaming model's cumulative average time per unit and cumulative total time: Number of Cumulative average time units per unit: Labor-hours 1 2 3 4 5 6 7 15,400 13,860 13,032 12,474 12,058 11,728 11,457 Cumulative total time: Labor-hours 15,400 27,720 39,096 49,896 60,290 70.368 80,199 X The Pacific Boat Company, which is under contract to the U.S. Navy, assembles troop deployment boats. i (Click the icon to view the additional information.) Requirement 1. Prepare a prediction of the total costs r 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 Cumulative total time: units Xth unit: Labor-hours 1 2 3 4 5 6 7 Labor-hours Pacific Boat reports the following cost information for the first PT109 assembled. (Click the icon to view the cost information.) Read the requirements. Data table Direct materials cost Direct manufacturing labor time for first boat Learning curve for manufacturing labor time per boat Direct manufacturing labor costs Variable manufacturing overhead costs Other manufacturing overhead Tooling costs Using the formula for a 90% learning curve, b = 2 Tooling can be reused at no extra cost because $203,000 per PT109 = 15,400 direct manufacturing labor-hours 90% cumulative average time 37 per direct manufacturing labor-hour 29 per direct manufacturing labor-hour 15% of direct manufacturing labor costs $283,000 $ $ In 0.90 In 2 0.693147-0.152004 all of its cost has been assigned to the first deployment boat. -0.105361 X