Conversion Factors for the Cumulative Average Number of Direct Labor Hours per Unit
\(\begin{array}{c}
\begin{array}{c}
80 \% \text { Learning Rate }\
\text { ( } n=\text { cumulative production) }\
\begin{array}{rrrrrr}
\hline n & & n & & {n} & \
\hline 1 & 1.00000 & 19 & 0.53718 & 37 & 0.43976 \
2 & 0.90000 & 20 & 0.52425 & 38 & 0.43634 \
3 & 0.83403 & 21 & 0.51715 & 39 & 0.43304 \
4 & 0.78553 & 22 & 0.51045 & 40 & 0.42984 \
5 & 0.74755 & 23 & 0.50410 & 64 & 0.37382 \
6 & 0.71657 & 24 & 0.49808 & 128 & 0.30269 \
7 & 0.69056 & 25 & 0.49234 & 256 & 0.24405 \
8 & 0.66824 & 26 & 0.48688 & 512 & 0.19622 \
9 & 0.64876 & 27 & 0.48167 & 600 & 0.18661 \
10 & 0.63154 & 28 & 0.47668 & 700 & 0.17771 \
11 & 0.61613 & 29 & 0.47191 & 800 & 0.17034 \
12 & 0.60224 & 30 & 0.46733 & 900 & 0.16408 \
13 & 0.58960 & 31 & 0.46293 & 1,000 & 0.15867 \
14 & 0.57802 & 32 & 0.45871 & 1,200 & 0.14972 \
15 & 0.56737 & 33 & 0.46464 & 1,400 & 0.14254 \
16 & 0.55751 & 34 & 0.45072 & 1,600 & 0.13660 \
17 & 0.54834 & 35 & 0.44694 & 1,800 & 0.13155\
18& 0.53979 & 36 & 0.44329 & 2,000 & 0.12720
\end{array}
\end{array}
\begin{array}{cl}
90 \% \text { Learning Rate }\
\text { ( } n=\text { cumulative production) }\
\begin{array}{rrrrrr}
\hline n &&{n} & &n & \
\hline 1 & 1.00000 & 19 & 0.73545 & 37 & 0.67091 \
2 & 0.95000 & 20 & 0.73039 & 38 & 0.66839 \
3 & 0.91540 & 21 & 0.72559 & 39 & 0.66595 \
4 & 0.88905 & 22 & 0.72102 & 40 & 0.66357 \
5 & 0.86784 & 23 & 0.71666 & 64 & 0.62043 \
6 & 0.85013 & 24 & 0.71251 & 128 & 0.56069 \
7 & 0.83496 & 25 & 0.70853 & 256 & 0.50586 \
8 & 0.82172 & 26 & 0.70472 & 512 & 0.45594 \
9 & 0.80998 & 27 & 0.70106 & 600 & 0.44519 \
10 & 0.79945 & 28 & 0.69754 & 700 & 0.43496 \
11 & 0.78991 & 29 & 0.69416 & 800 & 0.42629 \
12 & 0.78120 & 30 & 0.69090 & 900 & 0.41878 \
13 & 0.77320 & 31 & 0.68775 & 1,000 & 0.41217 \
14 & 0.76580 & 32 & 0.67471 & 1,200 & 0.40097 \
15 & 0.75891 & 33 & 0.68177 & 1,400 & 0.39173 \
16 & 0.75249 & 34 & 0.67893 & 1,600 & 0.38390 \
17 & 0.74646 & 35 & 0.67617 & 1,800 & 0.37711 \
18 & 0.74080 & 36 & 0.67350 & 2,000 & 0.37114
\end{array}
\end{array}
\end{array}\)

-The production for a new product follows:
$$\begin{array} { | c | c | }
\hline \text { Month } & \text { Units } \
\hline 1 & 4 \
2 & 5 \
3 & 6 \
4 & 7 \
\hline
\end{array}$$
The first unit will take 2,000 hours to produce and the learning rate is 90 percent.Currently,the company employs 40 workers,who each work 200 hours regular time per month.In which months will overtime be needed for the production schedule shown? Refer to the copy of Table G.1 above.
A) Month 4 only
B) Months 3 and 4 only
C) Months 1 and 2 only
D) Month 1 only

Question

Conversion Factors for the Cumulative Average Number of Direct Labor Hours per Unit
\(\begin{array}{c}
\begin{array}{c}
80 \% \text { Learning Rate }\
\text { ( } n=\text { cumulative production) }\
\begin{array}{rrrrrr}
\hline n & & n & & {n} & \
\hline 1 & 1.00000 & 19 & 0.53718 & 37 & 0.43976 \
2 & 0.90000 & 20 & 0.52425 & 38 & 0.43634 \
3 & 0.83403 & 21 & 0.51715 & 39 & 0.43304 \
4 & 0.78553 & 22 & 0.51045 & 40 & 0.42984 \
5 & 0.74755 & 23 & 0.50410 & 64 & 0.37382 \
6 & 0.71657 & 24 & 0.49808 & 128 & 0.30269 \
7 & 0.69056 & 25 & 0.49234 & 256 & 0.24405 \
8 & 0.66824 & 26 & 0.48688 & 512 & 0.19622 \
9 & 0.64876 & 27 & 0.48167 & 600 & 0.18661 \
10 & 0.63154 & 28 & 0.47668 & 700 & 0.17771 \
11 & 0.61613 & 29 & 0.47191 & 800 & 0.17034 \
12 & 0.60224 & 30 & 0.46733 & 900 & 0.16408 \
13 & 0.58960 & 31 & 0.46293 & 1,000 & 0.15867 \
14 & 0.57802 & 32 & 0.45871 & 1,200 & 0.14972 \
15 & 0.56737 & 33 & 0.46464 & 1,400 & 0.14254 \
16 & 0.55751 & 34 & 0.45072 & 1,600 & 0.13660 \
17 & 0.54834 & 35 & 0.44694 & 1,800 & 0.13155\
18& 0.53979 & 36 & 0.44329 & 2,000 & 0.12720
\end{array}
\end{array}
\begin{array}{cl}
90 \% \text { Learning Rate }\
\text { ( } n=\text { cumulative production) }\
\begin{array}{rrrrrr}
\hline n &&{n} & &n & \
\hline 1 & 1.00000 & 19 & 0.73545 & 37 & 0.67091 \
2 & 0.95000 & 20 & 0.73039 & 38 & 0.66839 \
3 & 0.91540 & 21 & 0.72559 & 39 & 0.66595 \
4 & 0.88905 & 22 & 0.72102 & 40 & 0.66357 \
5 & 0.86784 & 23 & 0.71666 & 64 & 0.62043 \
6 & 0.85013 & 24 & 0.71251 & 128 & 0.56069 \
7 & 0.83496 & 25 & 0.70853 & 256 & 0.50586 \
8 & 0.82172 & 26 & 0.70472 & 512 & 0.45594 \
9 & 0.80998 & 27 & 0.70106 & 600 & 0.44519 \
10 & 0.79945 & 28 & 0.69754 & 700 & 0.43496 \
11 & 0.78991 & 29 & 0.69416 & 800 & 0.42629 \
12 & 0.78120 & 30 & 0.69090 & 900 & 0.41878 \
13 & 0.77320 & 31 & 0.68775 & 1,000 & 0.41217 \
14 & 0.76580 & 32 & 0.67471 & 1,200 & 0.40097 \
15 & 0.75891 & 33 & 0.68177 & 1,400 & 0.39173 \
16 & 0.75249 & 34 & 0.67893 & 1,600 & 0.38390 \
17 & 0.74646 & 35 & 0.67617 & 1,800 & 0.37711 \
18 & 0.74080 & 36 & 0.67350 & 2,000 & 0.37114
\end{array}
\end{array}
\end{array}\)

-The production for a new product follows:
$$\begin{array} { | c | c | } 
\hline \text { Month } & \text { Units } \
\hline 1 & 4 \
2 & 5 \
3 & 6 \
4 & 7 \
\hline
\end{array}$$
The first unit will take 2,000 hours to produce and the learning rate is 90 percent.Currently,the company employs 40 workers,who each work 200 hours regular time per month.In which months will overtime be needed for the production schedule shown? Refer to the copy of Table G.1 above.
A) Month 4 only
B) Months 3 and 4 only
C) Months 1 and 2 only
D) Month 1 only

Quizplus · Accepted Answer

To determine whether overtime is needed, first calculate the total number of direct labor hours required to manufacture each unit of the product, using the cumulative average number of direct labor hours per unit from Table G.1. Since the learning rate is 90%, use the second set of conversion factors.

For the first unit: 
Total direct labor hours required = 2,000 hours x 0.73039 = 1,460.78 hours

For the second unit: 
Total direct labor hours required = 1,460.78 hours x 0.73039 = 1,067.24 hours

For the third unit: 
Total direct labor hours required = 1,067.24 hours x 0.72559 = 774.03 hours

For the fourth unit: 
Total direct labor hours required = 774.03 hours x 0.72102 = 558.05 hours

Next, calculate the regular time available each month: 
40 workers x 200 hours per worker per month = 8,000 regular hours per month

Finally, calculate the total direct labor hours required each month:

Month 1: 1,460.78 hours x 4 units = 5,843.12 total hours 
Month 2: 1,067.24 hours x 5 units = 5,336.20 total hours 
Month 3: 774.03 hours x 6 units = 4,644.18 total hours 
Month 4: 558.05 hours x 7 units = 3,906.35 total hours

Based on these calculations, overtime will be needed in Months 3 and 4 only, since the total direct labor hours required exceeds the regular time available in those months. Therefore, the correct answer is choice (B).