Find the direct labor costs for a batch order of 100 pumps. As this is a new order, there will be some learning occurring during the assembly process. The first assembly takes 50 minutes and that the second one takes only 35 minutes. The standard time is estimated as 10.0 minutes. The base wage is $10.00/hr.
a) Find the equation for the learning curve for this assembly.
b) How many cycles does it take a worker to reach the standard time of 10.0 minutes.
c) How long is the overall time to reach 10 minutes?
d) Assume that the operator continuously improves (i.e. follows the learning curve). What are the direct labor costs for the total batch of 100 pumps under daywork? What are the direct labor costs for the total batch of 100 pumps under a standard hour plan?
e) What is the operators performance (in %) at the 100th pump, if he/she continues learning?
f) What is the direct unit labor cost for the company for the last (100th) pump under the standard hour plan?