A construction firm wants to estimate the direct labor of a worker who will perform multiple iterations of tasks.The worker must do a total of 20 of these activities to reach steady state.The time estimated to perform the 20th iteration is 2 hours,and the learning rate for this repetitive activity is 70%.The cost of labor is $40/hr.Estimate the direct labor cost for 20 iterations of these activities.
A)$2,767.25
B)$2,341.45
C)$3,456.65
D)$1,234.12

Question

Quizplus · Accepted Answer

The direct labor cost for 20 iterations can be calculated using the formula for the learning curve. The formula for the total time (T_n) to perform n tasks given a learning rate (b) and the time to perform the first task (T_1) is: T_n = n * T_1 * n^(log(b)/log(2)). Given a 70% learning rate (b = 0.70) and the time to perform the 20th task (T_20 = 2 hours), we first find T_1 using the formula for the nth task: T_20 = T_1 * 20^(log(0.70)/log(2)). Solving for T_1 gives us the time to perform the first task. Then, we calculate the total time for 20 tasks and multiply by the cost of labor ($40/hr) to find the total direct labor cost. The correct calculation leads to a total cost of approximately $2,767.25.

A Construction Firm Wants to Estimate the Direct Labor of a Worker