these cost functions: spected) nours) better capture the above relation 10-40 Cost estimation, cumulative average-time learning curve. The Pacific 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 Pacific Boat submit a proposal on the cost of producing another six PT109. Pacific Boat reports the following cost information for the first PT109 assembled and uses a 90% cumu- lative 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) drivers of inspection costs Plot the data and regres er of inspection costs would week. Using the cost driver budget? Explain any implica- 2 to budget inspection costs. orting agricultural products in stways, is studying the behav- are of two types: (a) operating hicles). eight miles traveled by Spirit 3: Hose Insert Page Layout Formula Data Review View A B 1 Direct material cost $ 199,000 2 Direct manufacturing labor time for first boat 14,700 labor hours 3. Direct manufacturing labor rate $ 42 per direct manufacturing labor hour Variable manufacturing overhead cost $ 26 per direct manufacturing labor-hour Other manufacturing overhead 20% of direct manufacturing labor costs Tooling costs $ 279.000 Learning curve for manufacturing labor time per boat 90% cumulative average time Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat 10 in 0.9 -0.105361 11'Using the formula (page 391) for a 90% Ieaming curve, In 2 3 0.683147 -0.152004 Freight Miles 1,710 2,655 2,705 4,220 4,660 4,455 4,435 4,990 Required 2,990 1. Calculate predicted total costs of producing the six PT109s for the Navy. (Pacific Boat will keep the first deployment boat assembled, costed at $1,477,600, 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 PT109s in requirement 1 and (b) the predicted total costs for producing the six PT109s, 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. antal unit-time learning model Assume the same information for the option is that Pacific Boat uses a 2,610 2.240