You need to develop a labor time estimate for a customer order of 20 network ins
ID: 362912 • Letter: Y
Question
You need to develop a labor time estimate for a customer order of 20 network installations. it is estimated that the first installation will require 60 hours of labor and a learning curve of 90 percent is expected.
a. How many labor hours are required for the fifteenth installation?
b. How many labor- hours are required for the twentieth installation?
c. How many labor-hours are required to complete all 20 installations?
d. If the average labor cost is $32, what is the total labor cost for installing the networks
Explanation / Answer
We will use Standard Learning Curve table to find answers to the questions
Given are :
Time required for 1st installation = 60 hours
Learning curve = 90 percent
Accordingly ,
Time required for 15th installation using learning curve table = 39.75 hours
Time required for 20th installations as per learning curve table = 38.05 hours
Total labour hours required to complete all 20 installations = 876.47 hours
Total labour cost for installing 20 networks = $32 / hour x 876.47 hours = 28047.04 hours
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