Question

Mass Balance Company is manufacturing a new digital scale for use by a large chemical company....

  1. Mass Balance Company is manufacturing a new digital scale for use by a large chemical company. The order is for 40 units. The first scale took 60 hours of direct labor. Learning rate is 90%.
  1. What is the estimated time for the 40th unit?
  2. What is the estimated time for producing all 40 units?
  3. What is the average time per unit for producing the first 10 units?
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Sol.

Calculate the learning curve factor b with the help of formula that is given below:

In(P) In(2)

P is the learning percentage which is 90% or 0.9.

In(2) is the natural logarithm of 2.

In(0.90) In(2)

= -0.152

Now, use the given equation:  

T,= T xn

n is the number of units which is 40.

Tn is the amount of time of produce unit n.

T1 is the amount of time of produce 1 unit which is 60 hours.   

Determine the estimate time for the 40th unit as follow:

T,= T xn

T40 = 60 x 40-1.52

T40 = 34.35 hours

The estimated time for producing all 40 units is as follow:

= 60 X 60-1.52 x 40

= 1288.04 hours

The average time per unit for producing the first 10 units is as follow:

&=60\times1^{-0.152}

&=60

&=60\times2^{-0.152}   

&=54.00

&=60\times3^{-0.152}

&=50.77

&=60\times4^{-0.152}

&=48.60

&=60\times5^{-0.152}

&=46.97

&=60\times6^{-0.152}

&=45.69

&=60\times7^{-0.152}

&=44.63

= 60 X 8-0.152

= 43.74

&=60\times9^{-0.152}

&=42.96

&=60\times10^{-0.152}

&=42.28

Add all the calculation and divide it with 10.

\begin{aligned}&=\dfrac{479.64}{10}\end{aligned}

\begin{aligned}&=\text{47.96 hours}\end{aligned}

Add a comment
Know the answer?
Add Answer to:
Mass Balance Company is manufacturing a new digital scale for use by a large chemical company....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The Pacific Boat Company, which is under contract to the U.S. Navy, assembles troop deployment boats....

    The Pacific Boat Company, which is under contract to the U.S. Navy, assembles troop deployment boats. As part of its research program, it completes the assem of the first of a new model (PT109) of deployment boats. The Navy is impressed with the PT109. It requests that Pacific Boat submit a proposal on the cost of producing another six PT 109s Pacific Boat reports the following cost information for the first PT 109 assembled. Pacific Boat uses a 90% incremental...

  • Part IV-Problems (55 points) A. Highestec, Inc is beginning the production of a new product. Management...

    Part IV-Problems (55 points) A. Highestec, Inc is beginning the production of a new product. Management believes that 500 labor hours will be required to complete the new unit. A 90 percent cumulative average-time learning curve model for direct labor hours is assumed to be valid. Data on costs are as follows: S50,000 per unit s20 per direct labor hour $30 per direct labor hour Direct materials Direct labor Variable manufacturing overhead Required: a. Set up a table with columns...

  • The following data has been provided by your manufacturing department to estimate the standard cost of...

    The following data has been provided by your manufacturing department to estimate the standard cost of producing a particular product. Direct Labor - $20 per hour. The first unit took 0.6 hours of direct labor but you want to base the cost estimate on the number of hours needed for the 25th unit. You expect a 75% learning curve to apply to the direct labor hours. Overhead-50% of Direct Labor Material $43.75 per 25 units What is your estimate of...

  • World Defense manufactures radar systems. It has just completed the manufacture of its first newly designed...

    World Defense manufactures radar systems. It has just completed the manufacture of its first newly designed system, RS-32. Manufacturing data for the RS-32 follow: (Click icon to view data) Requirement Calculate the total variable costs of producing 2, 4, and 8 units. Begin by calculating the total cumulative time in labor-hours. (Round the cumulative average time per unit to the nearest whole number.) Cumulative average time Number of Cumulative total time: units per unit: Labor-hours Labor-hours 3,145 6,290 2 2,673...

  • Answer the question The costs of manufacturing horizontal fixed-mount barcode scanners are as follows: Cost Element...

    Answer the question The costs of manufacturing horizontal fixed-mount barcode scanners are as follows: Cost Elements Cost Rate Direct labor $25 per hour Material $380 per unit Overhead costs 50% of direct labor The production has a 79% learning curve applied to labor required, and the time to complete the first unit wa 40 direct labor hours. Determine the unit selling price based on the estimated time to complete the 100th uni if the company wants to make a profit...

  • Financial Statements of a Manufacturing Firm The following events took place for Digital Vibe Manufacturing Company...

    Financial Statements of a Manufacturing Firm The following events took place for Digital Vibe Manufacturing Company during March, the first month of its operations as a producer of digital video monitors: a. Purchased $43, 100 of materials. b. Used $33,200 of direct materials in production c. Incurred $49,600 of direct labor wages d. Incurred $69,800 of factory overhead. e. Transferred $115,900 of work in process to finished goods. Sold goods for $207,300. 9. Sold goods with a cost of $92,200....

  • Financial Statements of a Manufacturing Firm The following events took place for Digital Vibe Manufacturing Company...

    Financial Statements of a Manufacturing Firm The following events took place for Digital Vibe Manufacturing Company during March, the first month of its operations as a producer of digital video monitors: Purchased $46,400 of materials. Used $35,700 of direct materials in production. Incurred $53,400 of direct labor wages. Incurred $75,200 of factory overhead. Transferred $124,800 of work in process to finished goods. Sold goods for $223,200. Sold goods with a cost of $99,300. Incurred $57,100 of selling expense. Incurred $25,100...

  • Logan Chemical Company produces a chemical agent for commercial use. The company accounts for production in...

    Logan Chemical Company produces a chemical agent for commercial use. The company accounts for production in two departments: (1) Cooking, and (2) Bottling. In the first department, liquid substances are combined in large cookers and boiled. After the liquid is cooked, it is transferred to the Bottling Department where dye is added and the chemical is bottled. All material is added at the beginning of production in the Cooking Department and the company uses the weighted average method of process...

  • Financial Statements of a Manufacturing Firm The following events took place for Digital Vibe Manufacturing Company...

    Financial Statements of a Manufacturing Firm The following events took place for Digital Vibe Manufacturing Company during March, the first month of its operations as a producer of digital video monitors: a. Purchased $68,000 of materials. b. Used $52,400 of direct materials in production. C. Incurred $78,200 of direct labor wages. d. Incurred $110,200 of factory overhead. e. Transferred $182,900 of work in process to finished goods. f. Sold goods for $327,100. g. Sold goods with a cost of $145,500....

  • Fickel Company has two manufacturing departments-Assembly and Testing & Packaging. The predetermined overhead rates in Assembly...

    Fickel Company has two manufacturing departments-Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $16.00 per direct labor-hour and $12.00 per direct labor-hour, respectively. The company's direct labor wage rate is $20.00 per hour. The following information pertains to Job N.60 Testing Packaging Assembly $ 340 Direet materials Direct labor Required: 1. What is the total manufacturing cost assigned to Job N-60? 2. If Job N-60 consists of 10 units, what is the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT