1. Calculate predicted total costs of producing the six PT109s for the Navy. (WLJ Boat will...
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1. Calculate predicted total costs of producing the six PT109s for the Navy. (WLJ Boat will keep the first deployment boat assembled, costed at $1,493,200, as a demonstration model for potential customers.) 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 there is no learning curve for direct manufacturing labor? That is, for (b) assume a linear function for units produced and direct manufacturing labor-hours. Data table Direct materials cost Direct manufacturing labor time for first boat Learning curve for manufacturing labor time per boat Direct manufacturing labor costs Variable manufacturing overhead costs $ 205,000 per PT109 S S 15,200 direct manufacturing labor-hours 90% cumulative average time 45 per direct manufacturing labor-hour 21 per direct manufacturing labor-hour The WLJ 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 WLJ Boat submit a proposal on the cost of producing another six PT109s. WLJ Boat 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 PT109s. (A 90% learning curve means b = -0.152004.) (Click the icon to view the cost information.) Read the requirements. Requirement 1. Calculate predicted total costs of producing the six PT109s for the Navy. (WLJ Boat will keep the first deployment boat assembled, costed at $1,493,200, 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.) The total cumulative time in labor-hours for seven PT109s is PT109s is hours. hours; therefore, the total time to produce six 1. Calculate predicted total costs of producing the six PT109s for the Navy. (WLJ Boat will keep the first deployment boat assembled, costed at $1,493,200, as a demonstration model for potential customers.) 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 there is no learning curve for direct manufacturing labor? That is, for (b) assume a linear function for units produced and direct manufacturing labor-hours. Data table Direct materials cost Direct manufacturing labor time for first boat Learning curve for manufacturing labor time per boat Direct manufacturing labor costs Variable manufacturing overhead costs $ 205,000 per PT109 S S 15,200 direct manufacturing labor-hours 90% cumulative average time 45 per direct manufacturing labor-hour 21 per direct manufacturing labor-hour The WLJ 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 WLJ Boat submit a proposal on the cost of producing another six PT109s. WLJ Boat 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 PT109s. (A 90% learning curve means b = -0.152004.) (Click the icon to view the cost information.) Read the requirements. Requirement 1. Calculate predicted total costs of producing the six PT109s for the Navy. (WLJ Boat will keep the first deployment boat assembled, costed at $1,493,200, 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.) The total cumulative time in labor-hours for seven PT109s is PT109s is hours. hours; therefore, the total time to produce six
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Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
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