The SVP Boat Company, which is under contract to the U.S. Navy, assembles troop deployment boats. sVP Boat reports the following cost information for the first PT109 assembled. (Click the icon to vlew the additional information.) E(Click the icon to view the cost information.) Read the ouirements 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: Xth unit: Labor-hours Labor-hours unita 1 2 3 Enter any number in the edit fiolds and then click Check Answer parts 4remaining Clear All Check Answer Data Table 1 Direct material cost $204,000 Direct manufacturing labor time for first boat 15,600 labor-hours $44 per direct manufacturing labor-hour $27 per direct manufacturing labor-hour 20% of direct manufacturing labor costs $284,000 Direct manufacturing labor rate Variable manufacturing overhead cost Other manufacturing overhead Tooling costsa Learning curve for manufacturing labor time per boat 90% incremental unit-time a Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat In 0.90 -0.105361 b Using the formula for a 90% learning curve, = -0.152004 In 2 0.693147 SVP Boat uses a 90% incremental unit-time learning model as a basis for predicting direct manufacturing labor-hours in its assembling operations. (A 90% learning curve means b = -0.152004.) i Requirements 1. Prepare a prediction of the total costs for producing the six PT1098 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 $6,461,992. Why are the predictions different? How should SVP Boat decide which model it should use? (Click the icon to view the cumulative average-time learning model's cumulative average time per unit and cumulative total time.) Data Table 1 Number of Cumulative average time Cumulative total time: units Labor-hours per unit: Labor-hours 15,600 1 15,600 2 14,040 28,080 13,201 39,603 4 12,636 50,544 12,215 61,075 71,286 11,881 7 81,242 11,606 LO The SVP Boat Company, which is under contract to the U.S. Navy, assembles troop deployment boats. sVP Boat reports the following cost information for the first PT109 assembled. (Click the icon to vlew the additional information.) E(Click the icon to view the cost information.) Read the ouirements 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: Xth unit: Labor-hours Labor-hours unita 1 2 3 Enter any number in the edit fiolds and then click Check Answer parts 4remaining Clear All Check Answer Data Table 1 Direct material cost $204,000 Direct manufacturing labor time for first boat 15,600 labor-hours $44 per direct manufacturing labor-hour $27 per direct manufacturing labor-hour 20% of direct manufacturing labor costs $284,000 Direct manufacturing labor rate Variable manufacturing overhead cost Other manufacturing overhead Tooling costsa Learning curve for manufacturing labor time per boat 90% incremental unit-time a Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat In 0.90 -0.105361 b Using the formula for a 90% learning curve, = -0.152004 In 2 0.693147 SVP Boat uses a 90% incremental unit-time learning model as a basis for predicting direct manufacturing labor-hours in its assembling operations. (A 90% learning curve means b = -0.152004.) i Requirements 1. Prepare a prediction of the total costs for producing the six PT1098 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 $6,461,992. Why are the predictions different? How should SVP Boat decide which model it should use? (Click the icon to view the cumulative average-time learning model's cumulative average time per unit and cumulative total time.) Data Table 1 Number of Cumulative average time Cumulative total time: units Labor-hours per unit: Labor-hours 15,600 1 15,600 2 14,040 28,080 13,201 39,603 4 12,636 50,544 12,215 61,075 71,286 11,881 7 81,242 11,606 LO