A time standard was set as 0.20 hour per unit based on the 100th unit produced. Assume the task has a 70 percent learning curve. Refer to Exhibit 6.4. What would be the expected time of the 200th, 400th, and 800th units

200th unit = 0.70028hrs

400th unit = 0.4902hr

800th unit = 0.343hr

Explanation:

Learning rate = 70% = 0.7 (r)

From the learning curve equation

T(n)= T₁(n)^b

b= ln(r)/ln(2)= ln(0.7)/ln(2)= -0.5146

T(100)= T₁(100)^-0.5146

But T(100)=1

1= T₁×(0.0935)

T₁= 1/(0.0935)

T₁= 10.7

For 200th

T(200)= 10.7(200)^-0.5146= 0.70028hr

For 400th

T(400)= 10.7(400)^-0.5146= 0.4902hrs

800th units

T(800)= 10.7(800)^-0.5146= 0.343hrs

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urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total