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The Nautilus Company, which is under contract to the U

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The Nautilus 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 Nautilus submit a proposal on the cost of producing another six PT109s. Nautilus 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.) (Click the icon to view the cost information.) Read the require ante Requirement 1. Calculate predicted total costs of producing the six PT109s for the Navy. (Nautilus will keep the first deployment boat assembled, costed at $1,525,000, 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.) The total cumulative time in labor-hours for seven PT109s is hours, therefore, the total time to produce six PT109s is hours. Direct materials cost $ 201,000 per PT109 Direct manufacturing labor time for first boat 14,900 direct manufacturing labor-hours Learning curve for manufacturing labor time per boat 90% cumulative average time Direct manufacturing labor costs $ 41 per direct manufacturing labor-hour Variable manufacturing overhead costs $ 29 per direct manufacturing labor-hour Other manufacturing overhead 25% of direct manufacturing labor costs Tooling costs S 281,000 - 0.105361 Using the formula for a 90% leaming curve, b = = -0.152004 0.693147 2 Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat. In 0.90 In 2 Requirement 1. Calculate predicted total costs of producing the six PT109s for the Navy. (Blue Seas will keep the first deployment boat assembled, costed at $1,301,200, 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.) 76,552 hours therefore, the total time to produce six The total cumulative time in labor-hours for seven PT109s is PT109s is 61.852 hours Now calculate the predicted total costs of producing the six PT109. (Round your answers to the nearest whole dollar.) Direct materials s 1,194,000 Direct manufacturing labor 2.226,672 Variable manufacturing overhead 1.237.040 Other manufacturing overhead 445,334 S Total costs 5,103,046 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 for units produced and direct manufacturing labor-hours. Begin by calculating the predicted total costs for producing the six PT109s, assuming that there is no learning curve for direct manufacturing labor. (Round your answers to the nearest whole dollar.) Direct materials S 1,194.000 Direct manufacturing labor 3,175.2009 Variable manufacturing overhead 1,764,000 Other manufacturing overhead 635,040 Total costs 6,768,240 The difference between (a) requirement 1's predicted total costs and (b) predicted total costs with no learning curve is $ 1,665,194