Your job as the production cost estimator is to prepare the estimate. Refer to Table E.3. Total manufacturing time for the: first 8 units hours (round your response to the nearest whole number).

Management, Loose-Leaf Version
13th Edition
ISBN:9781305969308
Author:Richard L. Daft
Publisher:Richard L. Daft
Chapter19: Managing Quality And Performance
Section: Chapter Questions
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Manceville Air has just produced the first unit of a large industrial compressor that incorporated new technology in
the control circuits and a new internal venting system. The first unit took 112 hours of labor to manufacture. The
company knows from past experience that this labor content will decrease significantly as more units are produced.
In reviewing past production data, it appears that the company has experienced a 85% learning curve when producing
similar designs. The company is interested in estimating the total time to complete the next 7 units.
Your job as the production cost estimator is to prepare the estimate. Refer to Table E.3.
Total manufacturing time for the:
first 8 units
Learning Curve Coefficients
Unit Number (N)
8
Unit
Time
.512
80%
Total
Time
5.346
hours
Unit
Time
.614
85%
(round your response to the nearest whole number).
Total
Time
5.936
Unit
Time
.729
90%
Total
Time
6.574
-
X
Transcribed Image Text:1 2 3 4 5 6 7 8 Manceville Air has just produced the first unit of a large industrial compressor that incorporated new technology in the control circuits and a new internal venting system. The first unit took 112 hours of labor to manufacture. The company knows from past experience that this labor content will decrease significantly as more units are produced. In reviewing past production data, it appears that the company has experienced a 85% learning curve when producing similar designs. The company is interested in estimating the total time to complete the next 7 units. Your job as the production cost estimator is to prepare the estimate. Refer to Table E.3. Total manufacturing time for the: first 8 units Learning Curve Coefficients Unit Number (N) 8 Unit Time .512 80% Total Time 5.346 hours Unit Time .614 85% (round your response to the nearest whole number). Total Time 5.936 Unit Time .729 90% Total Time 6.574 - X
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