Sample Observations of a Claims Processor Made Over a 160-Hour

question 10

Multiple Choice

Sample observations of a claims processor made over a 160-hour work month reveal that the worker produced a total of 384 completed claims forms.The performance rating was 80%.The worker was idle 20% of the time (so that idle time should be subtracted from the total time when computing the average observed time) .The allowance factor is 8%.What is the standard time per unit?

• A)0.42 minutes
• B)16.0 minutes
• C)17.4 minutes
• D)20.0 minutes
• E)21.7 minutes

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Definitions:

Market Clear

A situation in which the market reaches a state where quantity supplied equals quantity demanded, leaving no surplus or shortage.

Surplus

An excess of income or assets over expenditure or liabilities in a given period, typically a fiscal year, leading to available resources beyond what is required.

Supply Schedule

A table that shows the quantity of a good or service that producers are willing to supply at various prices.

Equilibrium Price

The price level at which the supply of goods matches the demand for goods.