Question

Refer to the table below. Assume that the company involved now finds that the learning rate is 78 percent, instead of 80 percent. The 78 percent learning rate coefficient is -0.358454; that is b= -0.358454 in the formula Y= axb. Required: Using the formula, Y= axb, compute the labor time and costs for 2 to 8 units. (Round your intermediate calculations (except for coefficient) and final answers to 2 decimal places.) Answer is not complete. Unit Produced (X) Labor Time Required to Produce the Xth Unit (i.e, the Last Single Unit Produced) Cumulative Total Time in Labor Hours Total Cost Average Cost per Unit $ $ 5,000.00 8,900.00 12,272.44 15,314.44 5,000.00 4,450.00 4,090.81 3,828.61 3 - 4 - 5 100.00 78.00 67.45 60.84 56.16 52.61 49.78 47.46 100.00 178.00 245.45 306.29 362.45 415.06 464.84 512.30 7 20,753.00 Ⓡ 23,242.00 Ⓡ 25,614.95 3,458.83 3,320.29 X 3,201.87

Answer 1

Answer:

Unit Produced (X)	Labor Time Required to Produce the Xth Unit (i.e., the last single unit produced) (Y)	Cumulative Total Time in Labor- Hours	Total Cost	Average Cost per Unit
1	100	100	5000.00	5000.00
2	78.00	178.00	8900.00	4450.00
3	67.45	245.45	12272.44	4090.81
4	60.84	306.29	15314.44	3828.61
5	56.16	362.45	18122.60	3624.52
6	52.61	415.06	20753.10	3458.85
7	49.78	464.84	23242.19	3320.31
8	47.46	512.30	25614.95	3201.87

Y = aX^b

^{Calulation of Y}

^{Y1 =1^-0.358454*100 = 100}

^{Y2 =2^-0.358454*100 = 78.00}

Cumulative Total Time in Labor- Hours Calculation

Cumulative Total Time in Labor- Hours units 1= Y1

Cumulative Total Time in Labor- Hours units 2= Y1+Y2

Cumulative Total Time in Labor- Hours units 3= Y1+Y2+Y3

Total Cost Calculation:

Cost calculation for 1st unit is given, so will find the unit cost basis from unit 1=

=5000/100 =50

So for rest of the units: Cumulative cost * 50(calculated above same for all units)

Units 2 = 178.00*50 = 8900

same formula used for rest of the units

Average Cost per Unit Calculation:

=Total cost/No of units