Question
Victoria Designs manufactures various picture frames. Each new employee takes 7 hours to make the first picture frame and 2.8 hours to make the second.
Victoria Designs manufactures various picture frames. Each new employee takes 7 hours to make the first picture frame and 2.8 hours to make the second. The manufacturing overhead charge per hour is $22.
a. What is the learning-curve percentage, assuming the cumulative average method? b. What is the time needed to build 8 picture frames by a new employee using the cumulative average-time method? You may use an index of -0.5146. c. How much manufacturing overhead would be charged to the picture frames under the cumulative average-time approach? d. What is the learning-curve percentage, assuming the incremental unit-time method? e. What is the time needed to produce the 16th frame by a new employee using the incremental unit-time method? You may use an index of -1.3219.
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