Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › learning curve
- This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.
- AuthorPosts
- October 20, 2017 at 2:38 pm #412620
hi sir,
i am doing a qn from kaplan exam kit the qn is:-
the time for the first batch of 50 units was 400 hours but the labour budget is the subject of a learning effect where the learning rate is 90%. the rate of pay for labour is $12 per hour.
the business had received and satisfied an order for 600 units but it has now received a second order for another 800 units.
the value of b is= -0.152
what will be the cost of this second order? (no decimals please) $_________i have done this qn using batches and units seperately seperately..
for the batches i took the 600 units and 800 units and divided it by 50 units respectively and i got 12 and 16 batch, then i used the formula y=ax^b to find the total no of hours of 12th and 11th batch (3290.074165 and 3056.05375 hours) after finding the total no hours of both of them i subtracted them and i got 234.0204152
then to find the total no of second order which is the 800 units (16 batches) i did:-total for first 12 batches = 3290.074165
next 4 batches (16 batch less 12 batch)
(4*234.0204152) 936.0816608
______________
4226.155826
* $12
______________
$50713.86991
________________for the units i took the 600 units and 800 units , then i used the formula y=ax^b to find the total no of hours of 600th and 800 th (151.2798208 and 151.3181818 hours) after finding the total no hours of both of them i subtracted them and i got 128.30000000015888818
then to find the total no of second order which is the 800 units (16 batches) i did:-total for first 600 units = 90,767.89248
next 200units (800-600 units)
(200*128.3015818) 936.0816608
______________
116428.2088
* $12
______________
$1397138888.506
________________
after doing both the ways i could not get the correct answer
i have no idea where i have gone wrong
i am not sure if you are suppose to use the batches or the units..please kindly guide me sir where i have gone wrong..
October 20, 2017 at 4:09 pm #412636Firstly, since the time is given for the first batch, you must use batches and not units.
Secondly, since they have already produced 12 batches and now have an order for another 16 batches, they will then have produced a total of 28 batches.
Therefore to get the time for the next 16 batches, you need to calculate the total time for 28 batches and subtract the total time for the first 12 batches.
October 20, 2017 at 4:10 pm #412639thank you so much sir for guiding me,, 🙂 🙂
October 20, 2017 at 4:16 pm #412643You are welcome 🙂
- AuthorPosts
- The topic ‘learning curve’ is closed to new replies.