Acme,Inc,Produces Widgets

question 51

Multiple Choice

Acme,Inc.,produces widgets.To manufacture a new type of widget,it took 79 hours for the first widget.Acme estimates it has a 94% learning rate.Using the logarithmic approach,calculate the time it will take to manufacture the 128th widget.

• A)59.35 hours
• B)57.90 hours
• C)51.27 hours
• D)49.94 hours

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Definitions:

Performance Level

A measurement of the efficiency and effectiveness of a process or activity.

Labour Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, often used to assess workforce efficiency or cost control.

Labour Efficiency Variance

The difference between the actual hours worked and the standard hours expected to complete a task, multiplied by the standard labor rate.

Standard Direct Labour Hours

The estimated time considered necessary to produce one unit of a product under normal conditions.