The Pacific Boat Company, which is under contract to the U.S. Navy, assembles troop deployment boats….

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 assem 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 PT 109s Pacific Boat reports the following cost information for the first PT 109 assembled. Pacific Boat uses a 90% incremental unit-time learning model as a basis for predicting direct manufacturing labor-hours in its assembling operations. A 90% learning curve means b =-0.152004. (Click the icon to view the cost information.) Read the requirements Requirement 1. Prepare a prediction of the total costs for 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 Data Table $201,000 Direct material Direct manufacturing labor time for first boat Direct manufacturing labor rate Variable manufacturing overhead cost Other manufacturing overhead Tooling costsa Learning curve for manufacturing labor time per boat 15,700 labor-hours $45 per direct manufacturing labor-hour $21 per direct manufacturing labor-hour costs 20% of direct manufacturing labor $281,000 90% incremental unit-timeb a Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat. In 0.90 0.105361 b using the formula for a 90% learning curve. In 2 0.693147-0.152004

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