Langley Corporation is developing a new product that will be manufactured in pairs. The
company recently produced the first two units of this product using 200 hours of direct labor
time. If Langley has a 90% learning curve and uses the cumulative average-time learning
model, the total direct labor time to manufacture the first four units of this new product is

Answer (C) is correct.
With the cumulative average-time learning model, the cumulative
average time for production will be a certain percentage of what it
previously was every time production doubled. The first batch has an
average time of 100 hours per unit. Therefore, after four units, the
cumulative average time for all units will be 90 hours per unit, as
production has doubled from the first point. As four units have been
made, the cumulative time will be 360 hours.