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A small job-shop has just won a bid to supply an OEM with six specialized jigs. The work content is such that the expected standard time to make one jig is 54 labor hours. But because this is a new job, the first jig actually took 90 labor hours to complete. The highly skilled workforce has a learning rate estimated at 85%. Assuming an hourly wage of $30/hr, 100% overhead rate, and 10% personal time; determine the total time and cost of making the batch of six jigs.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91874936

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