Answer:
1,200 hours
Explanation:
Solving mathematically this will be :
y = ax^b
where,
y is the cumulative average time required to produce x units
a is the time required to produce the first unit of output
x is the number of units of output under consideration
b is the log of the Learning Curve % divided by Log 2
The firm use 150 hours to work on the product during the second month
Amount of time used in the first month will be calculated as :
y = 400(8)^(-0.322)
= 204.8 hours (average)
Total for 8 units = 204.8 hours × 8 units
= 1,638.40 hours
Amount of time used for the total months to manufacture 18 units :
y = 400(18)^(-0.322)
= 157.74 hours (average)
Total for 18 units = 157.74 hours × 18 units
= 2,839.32 hours
Therefore,
Hours to be used in the second month = Time on 18 units - Time on 8 units
= 2,839.32 hours - 1,638.40 hours
= 1,200 hours
So, the firm use 1,200 hours in total for the 10 units. Which gives an average of 120 hours per unit
