Accounting · Learning Curve Analysis

The cost estimates made have not taken account of the learning effect on the production process; it assumed a labour production time per unit of 0.5 hours. It has now been estimated that, although the first unit is expected to take 0.5 hours, a learning curve of 95% is expected to occur until the 100th unit has been completed. Labour cost per hour is $25 in both years. The value of the learning coefficient, b, is -0.0740005. What is the revised variable labour production cost for the new product's lifecycle?