Harry's Picture manufactures various picture frames. Each new employee takes 5 hours to make the first picture frame and 4 hours to make the second. The manufacturing overhead charge per hour is $20.
Required:
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 -0.1520.
c. 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 -0.3219.
d. How much manufacturing overhead would be charged to the 16 picture frames using the average-time approach?

Question

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The Answer of Harry's Picture manufactures various picture frames. Each new employee takes 5 hours to make the first picture frame and 4 hours to make the second. The manufacturing overhead charge per hour is $20.
Required:
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 -0.1520.
c. 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 -0.3219.
d. How much manufacturing overhead would be charged to the 16 picture frames using the average-time approach?

Harry's Picture Manufactures Various Picture Frames