The standard cost of the actual hours worked was $3,493 – $85 = $3,408.

(a)The standard cost of the actual hours worked was $3,493 – $85 = $3,408.At $12 per hour the actual hours worked were $3,408 / $12 = 284 hours.So the average time per batch for the first 32 batches was 284 / 32 = 8.875 hours per batch.32 batches represent 5 doublings of output.The learning rate was therefore:5 √ 8.875 / 20 = 0.85 = 85%(a) Calculate the actual rate of learning that occurred. (6 marks)(b) Assuming that the actual rate of learning and the actual labour rate continue throughout the life of the product, calculate the total direct labour cost that the company will incur during the life of the product. (4 marks)