Peden's Pictures manufactures various picture frames. Peden's uses the cumulative average-time learning model. Peden's has a 80% learning curve and each new employee takes 5 hours to make the first picture frame. The manufacturing overhead cost charged per hour is $20. What would be the cumulative total time needed if the firm produces 16 picture frames using the average-time approach?

		64.000 hours
		51.200 hours
		40.960 hours
		32.768 hours

The following is a example the professor gave me, but I do not understand why in his solution he is multiplying times 0.90 again. That's why I need help with the problem above.

YEP uses the cumulative average-time learning model. If the YEP has a 90% learning curve and the one unit would take 10 hours to produce, what would be the cumulative total time needed if the firm produces 4 units?

0.90 * 10 hours = 9 hours

* 0.90

------------------

8.1 hours

* 4

-------------------

32.4 hours ANSWER