The SVP Boat 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 SVP Boat submit a proposal on the cost of producing another six PT1095. SVP Boat 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 PT1098. (A 90% learning curve means b = -0.152004.) (Click the icon to view the cost information.) Read the requirements. Requirement 1. Calculate predicted total costs of producing the six PT1095 for the Navy. (SVP Boat will keep the first deployment boat assembled, costed at $1,448,400, as a demonstration model for potential customers.) Begin by deterrining the hours used to produce the six PT1095 for the Navy. (Round your answers to the nearest whole number.) The total cumulative lime in labor-hours for seven PT109S is hours; therefore, the total time to produce six PT109S is hours. - X Data table E X Requirements Direct materials cost $ 201,000 per PT109 Direct manufacturing labor time for first boat 15,100 direct manufacturing labor-hours 1. Calculate predicted total costs of producing the six PT1095 for the Navy. (SVP Boat will keep the first deployment boat assembled, costed at $1,448,400, 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 PT1095 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. Learning curve for manufacturing labor time per boat 90% cumulative average time Direct manufacturing labor costs 41 per direct manufacturing labor-hour Variable manufacturing overhead costs 23 per direct manufacturing labor-hour Other manufacturing overhead 15% of direct manufacturing labor costs Tooling costs $ 281,000 In 0.90 In 2 2 Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat. -0.105361 Using the formula for a 90% learning curve, b = = -0.152004 0.693147 Print Done