Question
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
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
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