The Blue Seas Company, which is under contract to the U.S. Navy, assembles troop deployment boats. (Click the icon to view the additional information.) Blue Seas reports the following cost information for the first PT109 assembled. (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 all answers to the nearest whole number.) Number of Individual unit time for Xth unit: Labor-hours Cumulative total time: Labor-hours Data table units 1 2 3 4 5 6 7 Direct materials cost Direct manufacturing labor time for first boat Learning curve for manufacturing labor time per boat Direct manufacturing labor costs $ 196,000 per PT109 15,300 direct manufacturing labor-hours 90% cumulative average time $ 44 per direct manufacturing labor-hou $ 30 per direct manufacturing labor-hou 25% of direct manufacturing labor cost Variable manufacturing overhead costs Other manufacturing overhead Tooling costs² $ 276,000 1 In 0.90 Using the formula for a 90% learning curve, b = In 2 -0.105361 0.693147 = -0.152004 2 Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat.
The Blue Seas Company, which is under contract to the U.S. Navy, assembles troop deployment boats. (Click the icon to view the additional information.) Blue Seas reports the following cost information for the first PT109 assembled. (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 all answers to the nearest whole number.) Number of Individual unit time for Xth unit: Labor-hours Cumulative total time: Labor-hours Data table units 1 2 3 4 5 6 7 Direct materials cost Direct manufacturing labor time for first boat Learning curve for manufacturing labor time per boat Direct manufacturing labor costs $ 196,000 per PT109 15,300 direct manufacturing labor-hours 90% cumulative average time $ 44 per direct manufacturing labor-hou $ 30 per direct manufacturing labor-hou 25% of direct manufacturing labor cost Variable manufacturing overhead costs Other manufacturing overhead Tooling costs² $ 276,000 1 In 0.90 Using the formula for a 90% learning curve, b = In 2 -0.105361 0.693147 = -0.152004 2 Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Blue Seas Company, which is under contract to the U.S. Navy, assembles troop deployment
boats.
(Click the icon to view the additional information.)
Blue Seas reports the following cost information for the first PT109 assembled.
(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 all answers to the nearest whole number.)
Number of
Individual unit time for
Xth unit: Labor-hours
Cumulative total time:
Labor-hours
Data table
units
1
2
3
4
5
6
7
Direct materials cost
$196,000 per PT109
Direct manufacturing labor time for first boat
15,300 direct manufacturing labor-hours
Learning curve for manufacturing labor time per boat
90% cumulative average time'
Direct manufacturing labor costs
$
44 per direct manufacturing labor-hour
Variable manufacturing overhead costs
$
30 per direct manufacturing labor-hou
Other manufacturing overhead
25% of direct manufacturing labor costs
Tooling costs
$ 276,000
1
In 0.90
Using the formula for a 90% learning curve, b =
In 2
-0.105361
0.693147
= -0.152004
2 Tooling can be reused at no extra cost because all of its cost has been assigned to the first deployment boat.
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