The Direct Labour Hours Required to Produce the First Two

question 127

Multiple Choice

The direct labour hours required to produce the first two units of a new product are 2,000 and 1,800, respectively. Using a 90% learning rate the company would estimate the direct labour hours for the 5^th unit to be

• A) 1692.4 hours.
• B) 1620.0 hours.
• C) 1566.0 hours.
• D) 1523.2 hours.

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