Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Learning rate. Kaplan question 121
- This topic has 5 replies, 2 voices, and was last updated 5 years ago by John Moffat.
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- May 20, 2019 at 1:29 pm #516583
Dear John, I am struggling with the below question.
” The time for the first batch of 50 units was 400 hours but the labour budget is the subject to 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 another order for 600 units but is now received a second order for another 800 units.
The value of b i= -0.152What will be the cost of this second order? no decimal please”
It appear to me that the learning process has stooped, hence we have successfully completed 600 units. I though we should you the equation Y=axb, to calculate average time per 800 units and them multiply results by 800 to get total hours for 800 units. Finally the total numbers of hours times rate of pay
so then Y= 400 hours x 800 units to (-0.152) etc.
But the Kaplan answer is different. How would you attempt this question?*I have watched the free lecture on this subject
many thanks Anna
May 20, 2019 at 2:30 pm #516594I do not have the Kaplan Kit – only the BPP one.
However why do you assume that the learning has stopped? There is nothing to say that in the question.
Firstly, you should work in batches (since the time is given for the first batch.
They made 1 batch, then they made another 12 batches – so they have made a total of 13 batches. They now have another order for 16 batches (which will take the total up to 29 batches).
So you need to calculate the total time for 29 batches and subtract the total time for 13 batches.
May 20, 2019 at 3:42 pm #516601yes, I must mistaken with my assumption. I get that.
The part I struggle with is why do I need to calculate the time for 29 batches and then subtract 13 batches, rather that just directly calculate the time or 16 batches, using formula. Is the formula Y=axb calculates the average time per outcome? Once I calculate the average time to produce 16 batches I should be able to calculate the total time by simply multiply this by number of batches.
?many thanks Anna
May 20, 2019 at 6:01 pm #516612You cannot calculate the average time to produce 16 batches on their own.
You can only calculate the time for a number of batches starting from the start.It will help you to watch the lecture again because I do explain this point.
May 20, 2019 at 9:48 pm #516651thank you John, I will do that, I must missed or forgot something
May 21, 2019 at 7:40 am #516686You are welcome 🙂
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