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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. I requests that Pacific Boat submit a proposal on the cost of producing another six PT109S. Pacific Boat reports the following cost information for the first PT109 assembled and uses a 90% incremental unit-time learning model as a basis for forecasting direct manufacturing labor-hours for the next six PT109S. (A 90% learning curve means b = -0.152004.) Home Insert Page Layout Formulas Data Review View A В 1 Direct material cost 2 Direct manufacturing labor time for first boat 3 Direct manufacturing labor rate 4 Variable manufacturing overhead cost 5 Other manufacturing overhead Tooling costs 7 Learning curve for manufacturing labor time per boat $ 199,000 14,700 labor hours 42 per direct manufacturing labor-hour $ $ 26 per direct manufacturing labor-hour 20% of direct manufacturing labor costs $279,000 90% cumulative average time 8 9 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 PUsing the formula (page 391) for a 90% learning curve, b= In 2 0.693147 =-0.152004 Required: 1. Prepare a prediction of the total costs for producing the six PT109S for the Navy. 2. Which learning curve model (cumulative average-time or incremental unit-time) should Pacific Boat use? How should it decide which learning curve model it should use?

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. I requests that Pacific Boat submit a proposal on the cost of producing another six PT109S. Pacific Boat reports the following cost information for the first PT109 assembled and uses a 90% incremental unit-time learning model as a basis for forecasting direct manufacturing labor-hours for the next six PT109S. (A 90% learning curve means b = -0.152004.) Home Insert Page Layout Formulas Data Review View A В 1 Direct material cost 2 Direct manufacturing labor time for first boat 3 Direct manufacturing labor rate 4 Variable manufacturing overhead cost 5 Other manufacturing overhead Tooling costs 7 Learning curve for manufacturing labor time per boat $ 199,000 14,700 labor hours 42 per direct manufacturing labor-hour $ $ 26 per direct manufacturing labor-hour 20% of direct manufacturing labor costs $279,000 90% cumulative average time 8 9 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 PUsing the formula (page 391) for a 90% learning curve, b= In 2 0.693147 =-0.152004 Required: 1. Prepare a prediction of the total costs for producing the six PT109S for the Navy. 2. Which learning curve model (cumulative average-time or incremental unit-time) should Pacific Boat use? How should it decide which learning curve model it should use?

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Cost estimation, incremental unit-time learning model. 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 PT109S. Pacific Boat reports the following cost information for the first PT109 assembled and uses a 90% incremental unit-time learning model as a basis for forecasting direct manufacturing labor-hours for the next six PT109S. (A 90% learning curve means b = -0.152004.) Home Insert Page Layout Formulas Data Review View A 1 Direct material cost 2 Direct manufacturing labor time for first boat 3 Direct manufacturing labor rate 4 Variable manufacturing overhead cost 5 Other manufacturing overhead 6 Tooling costs 7 Learning curve for manufacturing labor time per boat $ 199,000 14,700 labor hours 2$ 42 per direct manufacturing labor-hour $ 26 per direct manufacturing labor-hour 20% of direct manufacturing labor costs $279,000 90% cumulative average time 8. 9 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 PUsing the formula (page 391) for a 90% learning curve, b = In 2 0.693147 =-0.152004 Required: 1. Prepare a prediction of the total costs for producing the six PT109S for the Navy. 2. Which learning curve model (cumulative average-time or incremental unit-time) should Pacific Boat use? How should it decide which learning curve model it should use?
Transcribed Image Text:Cost estimation, incremental unit-time learning model. 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 PT109S. Pacific Boat reports the following cost information for the first PT109 assembled and uses a 90% incremental unit-time learning model as a basis for forecasting direct manufacturing labor-hours for the next six PT109S. (A 90% learning curve means b = -0.152004.) Home Insert Page Layout Formulas Data Review View A 1 Direct material cost 2 Direct manufacturing labor time for first boat 3 Direct manufacturing labor rate 4 Variable manufacturing overhead cost 5 Other manufacturing overhead 6 Tooling costs 7 Learning curve for manufacturing labor time per boat $ 199,000 14,700 labor hours 2$ 42 per direct manufacturing labor-hour $ 26 per direct manufacturing labor-hour 20% of direct manufacturing labor costs $279,000 90% cumulative average time 8. 9 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 PUsing the formula (page 391) for a 90% learning curve, b = In 2 0.693147 =-0.152004 Required: 1. Prepare a prediction of the total costs for producing the six PT109S for the Navy. 2. Which learning curve model (cumulative average-time or incremental unit-time) should Pacific Boat use? How should it decide which learning curve model it should use?
1. What are the direct labor costs to produce the 2nd through 7th boats? (Use Excel and enter your answer as a dollar amount rounded to the nearest dollar. 2. What are the total costs for producing the 6 PT109S for the Navy? (Use Excel, and then enter your answer as a dollar amount rounded to the nearest dollar. 3. 1. Comparing the two learning curve models, does the cumulative average-time model or the incremental unit-time model generally (a) estimate higher costs and (b) assumes a slower rate of learning? The cumulative average-time model generally estimates higher costs and assumes a slower rate of learning. The cumulative average-time model generally estimates higher costs and the incremental unit-time model generally assumes a slower rate of learning. The incremental unit-time model generally estimates higher costs and assumes a slower rate of learning. The incremental unit-time model generally estimates higher costs and the cumulative average-time model generally assumes a slower rate of learning.
Transcribed Image Text:1. What are the direct labor costs to produce the 2nd through 7th boats? (Use Excel and enter your answer as a dollar amount rounded to the nearest dollar. 2. What are the total costs for producing the 6 PT109S for the Navy? (Use Excel, and then enter your answer as a dollar amount rounded to the nearest dollar. 3. 1. Comparing the two learning curve models, does the cumulative average-time model or the incremental unit-time model generally (a) estimate higher costs and (b) assumes a slower rate of learning? The cumulative average-time model generally estimates higher costs and assumes a slower rate of learning. The cumulative average-time model generally estimates higher costs and the incremental unit-time model generally assumes a slower rate of learning. The incremental unit-time model generally estimates higher costs and assumes a slower rate of learning. The incremental unit-time model generally estimates higher costs and the cumulative average-time model generally assumes a slower rate of learning.
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