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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 normal time per unit?
Variable Direct Labor Cost
Costs associated with labor that vary directly with the level of production output.
Fixed Factory Overhead Cost
Costs related to the operation of a manufacturing facility that do not vary with production volume, such as rent, salaries, and insurance.
Rate of Return
The gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.
Target Cost Approach
A pricing method where the selling price is set first, and then the target cost is determined by subtracting a desired profit margin.
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