The SVP Boat Company, which is under contract to the U.S. Navy, assembles troop deployment boats. Click the icon to view the additional information.) SVP Boat reports the following cost information for the first PT109 assembled. (Click the icon to view the cost information.) Read the requirements Requirement 1. Prepare a prediction of the total costs 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. More info 2 X 3 5 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. Print Done 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 $ 202,000 per PT109 15,400 direct manufacturing labor-hours 90% cumulative average time? 43 per direct manufacturing labor-hour 30 per direct manufacturing labor-hour 25% of direct manufacturing labor costs Tooling costs $ 282,000 1 In 0.90 Using the formula for a 90% learning curve, b = - 0.105361 = -0.152004 0.693147 In 2 2 Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat. Print Done - 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 $6,638,749. Why are the predictions different? How should SVP Boat decide which model it should use? Cumulative average-time learning model's cumulative average time per unit and cumulative total time: Number of Cumulative average time Cumulative total time: units per unit: Labor-hours Labor-hours 1 15,400 15,400 2 13,860 27,720 3 13,032 39,096 4 12,474 49,896 5 12,058 60,290 6 11,728 70,368 7 11,457 80,199 Print Done