Can you please show your steps solution clearly.. 1. What is the total cost of the engine?2. What is the total direct labor cost?3. What is the total cost of the required production?

As a manager have been asked to estimate the total cost of producing 20 engines in your company. Current engines have an output of 125-hp per engine. 7 years ago, a similar 190- hp engine cost was 5350 KB. Beside that due to extreme competition in the industry, the cost of an engine has decreased with 11% only for 3 intervals of time throughout this period. Total cost consists of engine cost, direct labor cost and other labor- related costs. Pertinent data are as follows: wirect labor cost per I' 2 KB per hour I actory overhead I 20% of direct labor Packing costs 5% of direct labor I aintenance costs I 0% of engine cost est-capacity factor I .75 Past experience has shown that an 85% learning curve applies to the labor required producing these engines. Maintenance cost will be paid only once at the beginning of the second year. Use the estimated time to complete the 2i]l engine for the purpose of estimating the direct labor cost. The time to complete the rst engine has been estimated to be 85 hours