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Bacc Ans 2

The document outlines calculations related to a process with an 80% learning curve effect, where the first unit took 2000 hours to produce. It details the formulas to compute the total hours for the first 32 units, the hours for the 32nd unit, and the labor cost for the last 16 units based on a wage rate of kshs 1001 per hour. The calculations involve logarithmic functions to account for the learning curve effect.

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8 views2 pages

Bacc Ans 2

The document outlines calculations related to a process with an 80% learning curve effect, where the first unit took 2000 hours to produce. It details the formulas to compute the total hours for the first 32 units, the hours for the 32nd unit, and the labor cost for the last 16 units based on a wage rate of kshs 1001 per hour. The calculations involve logarithmic functions to account for the learning curve effect.

Uploaded by

ngangakiarie01
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Assume that a certain process has an 80% learning curve effect and the first unit took 2000hrs to

produce.

Required: Use the mathematical method to :

a) Compute the number of hours required to produce the first 32 units

b) Compute the number of hours required to produce 32nd unit

c) Assume that the wage rate is kshs 1001 per hour, compute the labor cost for producing the last 16
units

) Compute the number of hours required to produce the first 32


units:
Time to produce 32 units=2000×(32−log⁡2(0.8))Time to produce 32 units=20
00×(32−log2(0.8))

b) Compute the number of hours required to produce the 32nd


unit: Time to produce 32nd unit=2000×(32−log⁡2(0.8))
−2000×(31−log⁡2(0.8))Time to produce 32nd unit=2000×(32−log2(0.8))
−2000×(31−log2(0.8))

c) Compute the labor cost for producing the last 16 units:


Labor cost for last 16 units=Number of hours for the 48th unit+Number of ho
urs for the 47th unit+…+Number of hours for the 33rd unitLabor cost for last
16 units=Number of hours for the 48th unit+Number of hours for the 47th un
it+…+Number of hours for the 33rd unit

Now, substitute the given values and calculate the results:

learning curve=0.8learning curve=0.8


Time to produce first unit=2000Time to produce first unit=2000

a) Calculate the number of hours required to produce the first 32 units:


Time to produce 32 units=2000×(32−log⁡2(0.8))Time to produce 32 units=20
00×(32−log2(0.8))

b) Calculate the number of hours required to produce the 32nd unit:


Time to produce 32nd unit=2000×(32−log⁡2(0.8))−2000×(31−log⁡2(0.8))Time
to produce 32nd unit=2000×(32−log2(0.8))−2000×(31−log2(0.8))

c) Calculate the labor cost for producing the last 16 units:


Labor cost for last 16 units=Number of hours for the 48th unit+Number of ho
urs for the 47th unit+…+Number of hours for the 33rd unitLabor cost for last
16 units=Number of hours for the 48th unit+Number of hours for the 47th un
it+…+Number of hours for the 33rd unit
Finally, multiply the total number of hours for each calculation by the
wage rate (kshs 1001 per hour) to get the labor cost.

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