The Pacific Shore Company, which is under contract to the U.S. Nawy, assembles troce deployment boats 2. (Click the icon to view the additional information) Pacific shore reports the following cost information for the fist PT 109 assembied. Click the icon to view the cost information.) Read the Requirement 1. Prepare a prediction of the total costs for producing the six PT109s for the Nary Begin by calculating the cumulative total time in labor-hours. (Round all answers to the nearest whole number.) 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 costs2 $196,000 per PT 109 15,700 direct manufacturing labor-hours 90% cumulative average time 1 42 per direct manufacturing labor-hour 25 per direct manufacturing labor-hour 25% of direct manufacturing labor costs $276,000 1. Using the formula for a 90% learning curve, b=ln2ln0.90=0.6931470.105361=0.152004 2 Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat. 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. Requirements 1. 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 learning model) with the cost predictions based on a cumulative average-time learning model which has total costs of $6,295,650. Why are the predictions different? How should Pacific Shore decide which model it should use? Cumulative average-time learning model's cumulative average time per unit and cumulative total time