The Unit Improvement Factor for a 60% Learning Curve at 25

question 26

Multiple Choice

The unit improvement factor for a 60% learning curve at 25 units is 0.0933.The first and second timings of a person doing a job are 5 minutes and 3 minutes respectively.Which of the below is the learning-adjusted time estimate for unit number 25?

• A)0.4665 minutes
• B)0.0933 minutes
• C)4.665 minutes
• D)9.33 minutes
• E)3 minutes

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Definitions:

Variable Costing

A costing method that includes only variable production costs - direct materials, direct labor, and variable manufacturing overhead - in the cost of a product.

Variable Production Costs

Costs that fluctuate with the level of output production, such as raw materials and direct labor.

Variable Costing

An accounting method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.

Fixed Manufacturing Overhead

The set costs associated with producing goods that do not change with the level of output, including salaries, rent, and insurance.