The direct labor time required to produce the first sailboat of a particular model was 3000 hours.If the company believes that an 80% learning curve applies to the production of this model sailboat then the direct labor time required to produce the 2nd boat is estimated to be
A)600 hours.
B)2,400 hours.
C)3,600 hours.
D)4,000 hours.

Question

Quizplus · Accepted Answer

An 80% learning curve means that for each doubling of production, the time required will be reduced by 20%.

Thus, the time required to produce the 2nd boat will be:

3000 hours x 0.8 = 2400 hours

The Direct Labor Time Required to Produce the First Sailboat