A Manufacturing Plant Is Trying to Determine Standard Production Per

question 110

Essay

A manufacturing plant is trying to determine standard production per day for an incentive program. Suppose that the incentive program will pay $1 per unit produced above standard rates. A worker is timed at an average of 280 seconds per unit, with a performance rating of 105%. The plant has an allowance factor of 13%. If the worker later produces 100 units in an 8 hour shift, how much would he receive under the incentive plan?

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Definitions:

Tariff

A tax imposed by a government on goods and services imported from other countries.

Comparative Advantage

The ability of an individual, firm, or country to produce a certain good or service at a lower opportunity cost than other producers.

International Trade

The exchange of goods, services, and capital between countries and territories, allowing for greater variety of consumption and efficiencies in production.