The Following Data Is Related to the Time Required to Post

question 51

Essay

The following data is related to the time required to post checks drawn by the Last National Bank's depositors:
$$\begin{array} { l r } \text { Number of checks posted } & 795 \\\text { Total elapsed minutes } & 520 \\\text { Rest period minutes } & 12 \\\text { Interruption minutes } & 15\end{array}$$ Required:
a.Calculate the standard posting time per check.
b.Calculate the combined rest and interruption time as a percentage of the standard time per check.

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Definitions:

Factory Overhead Cost

All of the costs of producing a product except for direct materials and direct labor.

Normal Capacity

The average level of operational output or activity that a company can sustain over a long period, considering fluctuations in demand and maintenance schedules.

Cost Variance

The difference between the actual cost and the standard or planned cost in a budget.

Standard Cost

A predetermined cost of manufacturing, selling, or any other business activity, used for budgeting and performance evaluation.