1.

A motor company Ltd. Has observed that a 90° learning effect applies to all labour related costs whenever a new product is taken up for production the anticipated production to 320 units. For the coming year. The at Rs. 15/hour. Calculate the total labour hours and labour cost to manufacture 320 units.

Answer»

10 units = 1 lot

Units producedTotal output in unitsCumulative average time per unit in hrsTotal hours
1110001000
129001800
248103240
487295832
816656.110,497.68
1632590.4918,895.68

∴ Total hours = 18,895.68 

Total labour cost = 18,956.68 × 15 = Rs. 2,83,435.20



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