Learning Curve

Sharon Glessing, controller for Janson Company, has noticed that the company faces a 70 percent learning rate for its specialty design line. In planning the cost of the latest design, Sharon assumed that the first set of units would take 1,000 direct labor hours. She decided to use this information in budgeting for the cost of the total project, which would involve the manufacture of 16 sets. Direct labor is paid $40 per hour.

Required:

1. Complete the table below showing results by row for total production of: one unit, two units, four units, eight units, and sixteen units. (Round hour answers to two significant digits.) (Round Cumulative Total Time answers to the nearest whole number.)

Cumulative Number of Units	Cumulative Average Time per Unit in Hours	Cumulative Total Time: Labor Hours
1	fill in the blank 1	fill in the blank 2
2	fill in the blank 3	fill in the blank 4
4	fill in the blank 5	fill in the blank 6
8	fill in the blank 7	fill in the blank 8
16	fill in the blank 9	fill in the blank 10

2. What is the total labor cost if Janson Company makes eight sets? Sixteen sets? (Use the rounded answers in the subsequent computations).

Total labor cost for eight sets	$fill in the blank 11
Total labor cost for sixteen sets	$fill in the blank 12

3. Using the logarithmic function, complete the table below showing results by row for each of unit sets one through eight. (Round hour answers to two significant digits.) (Round Cumulative Total Time and Time for Last Unit answers to the nearest whole number.)

Cumulative Number of Units	Cumulative Average Time per Unit in Hours	Cumulative Total Time: Labor Hours	Time for Last Unit
1	fill in the blank 13	fill in the blank 14	fill in the blank 15
2	fill in the blank 16	fill in the blank 17	fill in the blank 18
3	fill in the blank 19	fill in the blank 20	fill in the blank 21
4	fill in the blank 22	fill in the blank 23	fill in the blank 24
5	fill in the blank 25	fill in the blank 26	fill in the blank 27
6	fill in the blank 28	fill in the blank 29	fill in the blank 30
7	fill in the blank 31	fill in the blank 32	fill in the blank 33
8	fill in the blank 34	fill in the blank 35	fill in the blank 36

What is the direct labor cost for the eighth set?

$fill in the blank 37