Question

Find the labor cost to produce 40 cellphones if the time needed to produce the first cell phone is 120 hours and learning rate is 90%. Assume the labor wage is $11/hour. please work it in excel

Answer 1

Calculation of total hours required to manufacture 40 cell phones:
Units	Average Time Per Unit (Previous unit time *90%)	Total Time (Average time per unit*Number of units)
1	120.00	120.00
2	108.00	216.00
3	97.20	291.60
4	87.48	349.92
5	78.73	393.66
6	70.86	425.15
7	63.77	446.41
8	57.40	459.17
9	51.66	464.90
10	46.49	464.90
11	41.84	460.26
12	37.66	451.89
13	33.89	440.59
14	30.50	427.03
15	27.45	411.78
16	24.71	395.31
17	22.24	378.02
18	20.01	360.23
19	18.01	342.22
20	16.21	324.20
21	14.59	306.37
22	13.13	288.87
23	11.82	271.80
24	10.64	255.25
25	9.57	239.30
26	8.61	223.98
27	7.75	209.34
28	6.98	195.38
29	6.28	182.12
30	5.65	169.56
31	5.09	157.70
32	4.58	146.50
33	4.12	135.97
34	3.71	126.08
35	3.34	116.81
36	3.00	108.14
37	2.70	100.03
38	2.43	92.46
39	2.19	85.40
40	1.97	78.83

Labour wage rate per hour = $11

Total labor hours required to manufacture 40 cell phones = 78.83 hours

Labor cost = $11*78.83 hours = $867.13

So, labor cost to manufacture 40 cell phones = $867.13