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Hello sir.
Question #199 Bpp P/r Kit.
The first batch took 200 hours to make, but during the first four months of production, a learning effect of 88% was observed, although this finished at the end of October.
# of batches assembled and sold
July 1
August 1
September 2
October 4
November 8Calculate the actual monthly labour costs for producing the microphones for each of the 5 months from July to November.
My question is, I did for all of the 4 months, but when it comes to November, why should we take Total Time took for 8th unit and substract the 7th Total Time. Why not 9th-8th. How can I understand that learning effect finished at the 7th unit and starting from 8th unit Learning effect has ceased…Confused a bit(:
The last unit in October is the 8th unit.
Since the learning effect stopped at the end of October, the time for all further units is the same time as the time for the 8th unit.
You get the time for the 8th unit by taking the total time for 8 units and subtracting the total time for 7 units.
(I do assume you have watched my lectures on learning curves. The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well 🙂 )
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