A Certain Product Under Development Took 200 Hours for the Production

question 23

Essay

A certain product under development took 200 hours for the production of its 2nd unit and 160 hours for its 4th unit.
(a) What is the learning curve?
(b) How much time did the first unit take?
(c) How much time would the production of the 10th unit take? (Use both the formula and the Table E.3 approach. Do the two versions agree?)

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Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of finished goods.

Direct Labor-Hours

Total working hours accrued by employees integral to the manufacturing sequence.

Variable Overhead

Costs of production that vary directly with the volume of output, such as utilities and labor efficiency.

Direct Labor-Hours

The total hours worked by employees directly involved in manufacturing products, used as a basis for assigning labor costs to those products.