A learning curve measures the effect of learning on efficiency.  Harry's Picture manufactures various picture frames. Each new employee takes 5 hours to make the first picture frame and 4 hours to make the second. The manufacturing overhead charge per hour is $20.  

  

 

 Required:  

 

 a. What is the learning-curve percentage, assuming the cumulative average method? 

 

 b. What is the time needed to build 8 picture frames by a new employee using the cumulative average-time method? You may use an index of -0.1520. 

 

 c. What is the time needed to produce the 16th frame by a new employee using the incremental unit-time method? You may use an index of -0.3219. 

 

 d. How much manufacturing overhead would be charged to the 16 picture frames using the average-time approach? 

 

 

 b. What is the time for a new employee to do 32 jobs with this learning curve using the cumulative average-time method? You may use an index of -0.1520. 

 

 15) Discuss the potential use of nonlinear curves in cost functions and cost analysis. Give some examples.