Learning curve theory states that as the quantity of a product , the man-hours per unit expended producing the

Learning curve theory states that as the quantity of a product produced increase , the man-hours per unit expended producing the product decrease.

Explanation:

The learning curve states that if a person performs similar task again and again, then after a period of time there will be an improvement in his/her performance.

It is calculated using following formula.

Y = ax^b

.

Y = cumulative average time per unit or batch.

a = time taken to produce initial quantity.

X = the cumulative units of production or, if in batches, the

cumulative number of batches.

b = the learning index or coefficient, which is calculated as:

log learning curve percentage ÷ log 2. So b for an

90 per cent curve would be log 0.9 ÷ log 2 = – 0.152

a.   is the correct choice.

good luck. : )

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total