The Unit Improvement Factor for an 80 Percent Learning Curve

question 49

Multiple Choice

The unit improvement factor for an 80 percent learning curve at 100 units is 0.2271. The first and second timings of a person doing a job are 20 minutes and 16 minutes, respectively. What is the learning-adjusted time estimate for unit number 100?

• A) 20 minutes
• B) 16 minutes
• C) 2.271 minutes
• D) 4.542 minutes
• E) 0.800 minute

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Definitions:

Manufacturing Overhead

Indirect costs related to manufacturing that cannot be directly traced to specific products, such as utilities and management salaries.

Work in Process Inventory

This inventory category includes goods that are partially completed in the production process but not yet ready for sale.

Total Cost

The sum of all expenses incurred in producing a product or providing a service.

Inventory Accounts

Accounts that represent the cost of goods and materials on hand that are available for sale or in the process of being made ready for sale.