1.

Sumsung company which manufacture LCD TV. The 1st lot of 10 units was completed in 1400 labour hours. Find each subsequent lot, the commutative production was doubled. And it has observed that 90% learning effect applies to all labour related cost. The anticipated production is 320 units of LCD TV find total labour cost required to manufacture 320 unit and also find the total labour cost at Rs. 20/hrs.

Answer»

Let 10 units = 1 lot

No. of unitsTotal O/PCumulative Avg Time/unitTotal hours
1114001400
1290% of 1400 12602520
2490% of 1260 11344536
4890% of 1134 1020.68164.8
81690% of 918.50 826.68614696.64
163226453.952

 

Total labour hrs = 26453.952
Labour cost at Rs. 20/hr = 529079.04


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