Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Urgent please The Eastern Shore Company, which is under contract to the U.S. Nawy, assembles troop deployment boats. As part of its resoarch program, it
Urgent please
The Eastern Shore Company, which is under contract to the U.S. Nawy, assembles troop deployment boats. As part of its resoarch program, it completos the assembly of the first of a new model (PT109) of doployment boats. The Navy is impressed with the PT109. wirequests that Eastom Shore submit a proposal on the cost of producing another six PT 109s. Eastern Shore reports the folowing cost information for the first PT 109 assembled and uses a 90% cumulathe sverago-time learning model as a basis for forecasting direct manufacturing laber-hours for the next six PTics. (A 90% learing curvo means b=0.152004 ) (Cick the icon to view the cont informabon) Read the teavirements. Requirement 1. Calculate predicted tatal costs of producing the six. PT 10Ss for the Navy. (Easlem Shore will hesp the frst deployment boat assembled, costed at $1,428, 400, as a demenstration model for potental customers.] Begin by determining the hours used to produce the six PTrogs for the Navy. (Round intermediary and final answers to the nearest whalo number.) The fotal aumudaseve sme in labor-hours for seven PT109s is Pricot is hours, therelore, the lotal fime to produce six foure. Data table Direct materiats cost 5207,000 per PT109 Oirect manutacturing labor time for first boat 14,600 direct manysacturing labor-hours Learning eurve for manufacturing labor time per boat 90\%. cumulative average time Direct manufacturfog labor costs Variable manulacturing overthead costs Other manufacturing overhead Tooling costs? 5287,000 Using the forenula for a 00% learning curve, b=ln2ln0.90=0.6931470.105361=0.152004 2 Tooling can be reused at no oxtra cost because al of its cost has been assigned to the frat deployment boat. The Eastern Shore Company, which is under contract to the U.S. Navy, assembles croop deploymert boats. As part of its research program, it completes the assembly of the first of a new model (PT 109) of deployment boats. The Navy is impressed with the PT109. It requests thet Eastern Shore submit a proposal on the cost of producing another six PT 109s. Eastern Shore roports the following cost informaton for the frest PT 109 assemblod and uses a 90% cumutative average-time leaming model as a basis for forecascing direct manutncturing labor-hours for the next six PT109s. (A 90% learning curve means b =0,152004.) Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started