Question
mable design manufactures various picture frames. Each new employee takes 7 7 hours to make the first picture frame and 2.8 2.8 hours to make
mable design manufactures various picture frames. Each new employee takes 7
7 hours to make the first picture frame and 2.8
2.8 hours to make the second. The manufacturing overhead charge per hour is $ 34
$34.
Read the requirements
.
Requirement a. What is thelearning-curve percentage, assuming the cumulative averagemethod?
Begin by completing the following table.
Unit #
Hours
Cumulative Hours
Cumulative Average
1
2
Now calculate thelearning-curve percentage.
/
=
Learning-curve percentage
/
=
%
Requirement b. What is the time needed to build 6
6 picture frames by a new employee using the cumulativeaverage-time method? You may use an index of negative 0.5146
0.5146.
First, select the formula to determine the cumulative time per unit using the followingcomponents:
LOADING...
(Click the icon to view thecomponents.)
Now calculate the time needed to build 6
6 picture frames. (Use the formula determined above. Do not round intermediary calculations. Only round the amount you input in the cell to two decimalpoints, X.XX.)
The time needed to build 6 picture frames using the cumulative average-time method is
hours.
Requirement c. How much manufacturing overhead would be charged to the 6
6 picture frames under the cumulativeaverage-time approach? (Round your answer to the nearest wholedollar.)
The manufacturing overhead to be charged is $
.
Requirement d. What is thelearning-curve percentage, assuming the incrementalunit-time method?
The learning curve percentage is
%.
Requirement e. What is the time needed to produce the 12
12th frame by a new employee using the incrementalunit-time method? You may use an index of negative 1.3219
1.3219.
First, select the formula to determine the time taken to produce the last single unit using the followingcomponents:
LOADING...
(Click the icon to view thecomponents.)
Upper X equals b x a Superscript y
X=bxay
b equals y x a Superscript x
b=yxax
y equals a x Upper X Superscript b
y=axXb
Now calculate the time needed to produce the 12
12th frame. (Use the formula determined above. Do not round intermediary calculations. Only round the amount you input in the cell to two decimalpoints, X.XX.)
The time needed to build the 12th picture frame using the incremental unit-time method is
hours.
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