Question: The direct manufacturing labor time required to complete the first unit of production for ABC Corp. took 1,000 hours. ABC Corp. estimates a learning curve

The direct manufacturing labor time required to complete the first unit of production for ABC Corp. took 1,000 hours. ABC Corp. estimates a learning curve for manufacturing labor time of 80%. It has been determined that the average time per unit for three units is approximately 702 hours. Using the cumulative-average time learning model, calculate the cumulative total time in labor hours required to produce four units of product.

A. 3,142 hours

B. 2,560 hours

C. 2,246 hours

D. 3,200 hours

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