The SVP Boat Company, which is under contract to the U.S. Navy, assembles troop deployment boals. 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 PT109. 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 PT109. (A 90% learning curve means b= -0.152004.) Requirement 1. Calculate predicted total costs of producing the six PT109s for the Navy. (SVP Boat will keep the first deployment boat assembled, costed at S1,448,400, 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.) 78,636 hours; therefore, the total time to produce six The total cumulative time in labor-hours for seven PT109s is PT109s is 63,536 hours. Now calculate the predicted total costs of producing the six PT109. (Round your answers to the nearest whole dollar.) Direct materials $ 1,206,000 Direct manufacturing labor 2,604,976 Variable manufacturing overhead 1,461,328 Other manufacturing overhead 390,746 S Total costs 5,663,050 Requirement 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 PT109s, assuming that there is no leaming curve for direct manufacturing labor? That is, for (b) assume a linear function for units produced and direct manufacturing labor-hours. Begin by calculating the predicted total costs for producing the six PT1095, assuming that there is no learning curve for direct manufacturing labor. (Round your answers to the nearest whole dollar.) Direct materials Direct manufacturing labor X Requirements Variable manufacturing overhead Other manufacturing overhead Total costs 1. Calculate predicted total costs of producing the six PT109s 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 arount 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 PT109s, assurning 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. Data table $ 201,000 per PT109 15,100 direct manufacturing labor-hours 90% cumulative average time? 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 costs 41 per direct manufacturing labor-hour $ 23 per direct manufacturing labor-hour 15% of direct manufacturing labor costs $ 281,000 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