What the total labor cost for four units will be

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Each time The Stone Company hires a new employee, it must wait for some period of time before the employee can meet production standards. New employees are paid $150 per hour. Management is unsure of the learning curve in its operation, but it knows the first job by a new employee takes 40 hours and the second and third job take 32 and 28 hours respectively. Assume all jobs to be equal in size.

Question 1: Assuming that the company uses the incremental learning curve method, the total labor cost for 4 units will be closest to

Option A. $18,840

Option B. $3,840

Option C. $3,570

Option D. $18,360

Reference no: EM132533411

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