Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Quantitative analysis

- This topic has 1 reply, 1 voice, and was last updated 2 years ago by John Moffat.

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- November 25, 2020 at 2:57 pm #596426
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)1)I didn’t understand y did they do y=400*12^-0.152…

Y did they use x as 12??

While batch 1 it should x=1….2)Or is it coz the first order is 600units so 600/50…

N second order total will be 1400/50=28 .. plz confirm if first or second explaination is rgtordingNovember 25, 2020 at 6:35 pm #596451They have not used x as 12 at all.

They have used x as 1, but given that the question asks for the cost (not the time taken) they have multiplied by 12 because that is the cost per hour.

Maybe it would have been better if they had written it as 400*12*1^(-0.152), but the result would be the same.

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