The Pacific 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 first of a new model (PT109) of deployment boats. The Navy is impressed with the PT109. It requests that Pacific Shore submit a proposal on the cost of producing another six PT109s. Pacific Shore reports the following cost information for the first PT109 assembled and uses a 90% cumulative average-time learning model as a basis for forecasting direct manufacturing labor-hours for the next six PT1095. (A 90% learning curve means b = -0.152004.) (Click the icon to view the cost information.) Read the requirements Question Viewer Requirement 1. Calculate predicted total costs of producing the six PT109s for the Navy. (Pacific Shore will keep the first deployment boat assembled, costed at $1,414,200, 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) hours; therefore, the total time to produce six The total cumulative time in labor-hours for seven PT109s is PT109s is hours. Requirements X Data table 1. Calculate predicted total costs of producing the six PT109s for the Navy. (Pacific Shore will keep the first deployment boat assembled, costed at $1,414,200, 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 PT109s in requirement 1, and (b) the predicted total costs for producing the six PT1098, 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 $ 199,000 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 time Direct manufacturing labor costs S S 36 per direct manufacturing labor-hour Variable manufacturing overhead costs $ 26 per direct manufacturing labor-hour Other manufacturing overhead 25% of direct manufacturing labor costs Tooling costs $ 279,000 In 0.90 - 0.105361 Using the formula for a 90% leaming curve, b= In 2 a 0.693147 -=-0.152004 2 Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat. Print Done 1 Clear all Check