50.1K

Verified Solution

Link Copied!

(15 MARKS, 27 MINUTES) QUESTION 3 As a result of Corona virus outbreak in the world, an increased demand had caused shortage in hand sanitisers. The University of Namibia ("UNAM") laboratory has responded to this product shortage by mixing and selling own sanitisers to the public at a very affordable price. Since this is a new product, the university had to quickly assembly a team of five members from its final year science students to mix and fill the containers manually. These students although under strict supervision, had to start from scratch with the mixing and filling of the sanitisers in batches of 50 containers of 500 ml in order to meet the unexpected spike in demand. Each student will be remunerated at a rate of N$ 7.50 per hour of production. The supervisor has highlighted in the production report that it took 12 hours to manufacture the first batch and a total cumulative time of 27 hours to manufacture the 4th batch. MARKS 3 6.5 REQUIRED: 3.1. Using the learning curve techniques, determine the rate of learning for the given scenario. 3.2. Determine the time it takes the team to complete the 8th batch. 3.3. Upon hearing that UNAM manufactures own sanitisers, the Ministry of Health and Social Services has placed a special order of 150 containers. What would be the incremental direct labour cost for the special order assuming normal production are 8 batches? 5.5 15 TOTAL MARKS FOR QUESTION 3

Answer & Explanation Solved by verified expert

See Answer