Harold's Picture manufactures various picture frames. Each new employee takes 6 hours to make the first picture frame and 4.8 hours to make the second. The manufacturing overhead charge per hour is $25.
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 Harold's Picture manufactures various picture frames. Each new employee takes 6 hours to make the first picture frame and 4.8 hours to make the second. The manufacturing overhead charge per hour is $25.
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?

Harold's Picture Manufactures Various Picture Frames