Case Study - 3 Oman Solar Systems Co. LLC is specialized in manufacturing of solar PV modules in Oman. The company manufactures solar PV modules in a batch of 5 units. The company hired the specialists who will be engaged only on manufacturing solar PV modules and were paid at RO 75 per hour. The company has orders to produce 320 solar PV modules in the next one year. The company believes that as the workers are doing the same task repeatedly, there will a learning curve effect. So, the Management Accountant of the company was asked to measure the learning curve rate so that the company can estimate the labour cost of manufacturing solar PV modules with more accuracy. The Management Accountant requested you to help in estimates the learning curve rate. You have advised the Management accountant to record the time taken to produce first and second batch of solar PV modules to identify the presence of learning effect. After completion of the production of the first two batches, the management accountant again approached you and informed that the time taken to produce first and second batches of solar PV modules is 240 hours and 192 hours respectively. You are required to help the Management Accountant of Oman Solar Systems Co. LLC in : a) Measuring the learning curve rate applicable for the company. (2 Marks) b) Estimating the average time to produce first 20 solar PV modules (2 Marks) c) Estimating the total labour cost of producing first 40 solar PV modules (2 Marks) d) Estimating the average time per unit when the company produces first 160 solar PV modules (2 Marks) e) Estimating the average cost per unit when the company produces first 320 solar PV modules (2 Marks) Case Study - 3 Oman Solar Systems Co. LLC is specialized in manufacturing of solar PV modules in Oman. The company manufactures solar PV modules in a batch of 5 units. The company hired the specialists who will be engaged only on manufacturing solar PV modules and were paid at RO 75 per hour. The company has orders to produce 320 solar PV modules in the next one year. The company believes that as the workers are doing the same task repeatedly, there will a learning curve effect. So, the Management Accountant of the company was asked to measure the learning curve rate so that the company can estimate the labour cost of manufacturing solar PV modules with more accuracy. The Management Accountant requested you to help in estimates the learning curve rate. You have advised the Management accountant to record the time taken to produce first and second batch of solar PV modules to identify the presence of learning effect. After completion of the production of the first two batches, the management accountant again approached you and informed that the time taken to produce first and second batches of solar PV modules is 240 hours and 192 hours respectively. You are required to help the Management Accountant of Oman Solar Systems Co. LLC in : a) Measuring the learning curve rate applicable for the company. (2 Marks) b) Estimating the average time to produce first 20 solar PV modules (2 Marks) c) Estimating the total labour cost of producing first 40 solar PV modules (2 Marks) d) Estimating the average time per unit when the company produces first 160 solar PV modules (2 Marks) e) Estimating the average cost per unit when the company produces first 320 solar PV modules (2 Marks)
