Conversion Factors for the Cumulative Average Number of Direct Labor

question 8

Multiple Choice

Conversion Factors for the Cumulative Average Number of Direct Labor Hours per Unit
$\begin{array}{c}\begin{array}{c}80 \% \text { Learning Rate }\\\text { ( } n=\text { cumulative production) }\\\begin{array}{rrrrrr}\hline n & & n & & {n} & \\\hline 1 & 1.00000 & 19 & 0.53718 & 37 & 0.43976 \\2 & 0.90000 & 20 & 0.52425 & 38 & 0.43634 \\3 & 0.83403 & 21 & 0.51715 & 39 & 0.43304 \\4 & 0.78553 & 22 & 0.51045 & 40 & 0.42984 \\5 & 0.74755 & 23 & 0.50410 & 64 & 0.37382 \\6 & 0.71657 & 24 & 0.49808 & 128 & 0.30269 \\7 & 0.69056 & 25 & 0.49234 & 256 & 0.24405 \\8 & 0.66824 & 26 & 0.48688 & 512 & 0.19622 \\9 & 0.64876 & 27 & 0.48167 & 600 & 0.18661 \\10 & 0.63154 & 28 & 0.47668 & 700 & 0.17771 \\11 & 0.61613 & 29 & 0.47191 & 800 & 0.17034 \\12 & 0.60224 & 30 & 0.46733 & 900 & 0.16408 \\13 & 0.58960 & 31 & 0.46293 & 1,000 & 0.15867 \\14 & 0.57802 & 32 & 0.45871 & 1,200 & 0.14972 \\15 & 0.56737 & 33 & 0.46464 & 1,400 & 0.14254 \\16 & 0.55751 & 34 & 0.45072 & 1,600 & 0.13660 \\17 & 0.54834 & 35 & 0.44694 & 1,800 & 0.13155\\18& 0.53979 & 36 & 0.44329 & 2,000 & 0.12720\end{array}\end{array}\begin{array}{cl}90 \% \text { Learning Rate }\\\text { ( } n=\text { cumulative production) }\\\begin{array}{rrrrrr}\hline n &&{n} & &n & \\\hline 1 & 1.00000 & 19 & 0.73545 & 37 & 0.67091 \\2 & 0.95000 & 20 & 0.73039 & 38 & 0.66839 \\3 & 0.91540 & 21 & 0.72559 & 39 & 0.66595 \\4 & 0.88905 & 22 & 0.72102 & 40 & 0.66357 \\5 & 0.86784 & 23 & 0.71666 & 64 & 0.62043 \\6 & 0.85013 & 24 & 0.71251 & 128 & 0.56069 \\7 & 0.83496 & 25 & 0.70853 & 256 & 0.50586 \\8 & 0.82172 & 26 & 0.70472 & 512 & 0.45594 \\9 & 0.80998 & 27 & 0.70106 & 600 & 0.44519 \\10 & 0.79945 & 28 & 0.69754 & 700 & 0.43496 \\11 & 0.78991 & 29 & 0.69416 & 800 & 0.42629 \\12 & 0.78120 & 30 & 0.69090 & 900 & 0.41878 \\13 & 0.77320 & 31 & 0.68775 & 1,000 & 0.41217 \\14 & 0.76580 & 32 & 0.67471 & 1,200 & 0.40097 \\15 & 0.75891 & 33 & 0.68177 & 1,400 & 0.39173 \\16 & 0.75249 & 34 & 0.67893 & 1,600 & 0.38390 \\17 & 0.74646 & 35 & 0.67617 & 1,800 & 0.37711 \\18 & 0.74080 & 36 & 0.67350 & 2,000 & 0.37114\end{array}\end{array}\end{array}$

-How long will it take to make 25 units if the first one took 8 hours and there is a 90 percent learning rate? Refer to the copy of Table G.1 above.

• A) Fewer than or equal to 130 hours
• B) Greater than 130 hours but fewer than or equal to 140 hours
• C) Greater than 140 hours but fewer than or equal to 150 hours
• D) Greater than 150 hours

---

Definitions:

Cost Estimates

The projected costs associated with the manufacturing of a product, completion of a project, or provision of a service.

Accountants

Professionals responsible for maintaining and interpreting financial records.

Task Analysis

A systematic process of breaking down a job into its component tasks in order to identify how it can be done effectively.

Costs Estimation

The process of predicting or approximating the cost of completing a project or producing a good.