Weston,Inc

question 68

Multiple Choice

Weston,Inc.,produces widgets.To manufacture a new type of widget,it took 11 iterations before the process reached a steady state of 18 hours.If Weston has a 95% learning rate,use the logarithmic approach to calculate the time it took to manufacture the first widget.

• A)21.49 hours
• B)22.26 hours
• C)19.58 hours
• D)20.80 hours

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Definitions:

Labor Rate Variance

The difference between the expected cost of labor per unit of production and the actual cost, often used to identify efficiency and wage rate changes.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost allocated for the actual production volume, resulting from efficiency in variable overhead resource usage.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead allocated for the actual production level.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (standard) variable overhead based on actual production levels.