This is the number of direct labor hours required for the first unit multiplied by 7. This would be correct only if no learning had taken place. Since learning did take place, the number of direct labor hours required for the additional seven units must be less than the number of hours for the first unit multiplied by 7.
To find the number of direct labor hours required for the additional seven units, first find the total direct labor hours required for all eight units. Then, to find the number of hours required for the seven additional units, subtract the 10,000 hours required for the first unit from the total number of hours required for all eight units. The learning curve rate is given as 80%. Therefore, the formula to calculate the total direct labor hours required for 8 units (3 doublings) is: 10,000 (2 × .8) (2 × .8) (2 × .8), or 10,000 (2 × .8)3, which is equal to 40,960. The first unit required 10,000 direct labor hours, so we subtract the 10,000 hours required for the first unit from the 40,960 hours required for all 8 units. The result, 30,960 hurs, is the number of hours required for units 2-8, the seven additional units.
This is the total number of direct labor hours required for all eight units. The number of direct labor hours required for the additional seven units (units 2 through 8) will be this number minus the number of direct labor hours required for the first unit.
This is the number of direct labor hours required for the first unit multiplied by 7 and the product multiplied by .80. This is not the correct way to find the number of direct labor hours required for the additional seven units. Find the total number of direct labor hours required for all eight units. The number of direct labor hours required for the additional seven units (units 2 through 8) will be that number minus the number of direct labor hours required for the first unit.
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