Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher

Exercise 39

Learning Curves (Appendix B)Refer to the example in Appendix B. Assume that the company now finds that the learning rate is 90 percent, instead of 80 percent. The 90 percent learning rate coefficient is -0.152004; that is b = -0.152004 in the formula Y = aX b.
Required
Using the formula, Y = aX b , and the data given in the example in Appendix B, except for the new learning rate, recompute the labor time and costs presented in Exhibit 5.18.