Consider the Following Time Study Data $\quad$ $\quad$ $\quad$

question 50

Essay

Consider the following time study data.
$\quad$$\quad$$\quad$$\quad$$\text { Observation Cycles Actual Time in Minutes) }$
$\begin{array}{|c|c|c|c|c|c|c|c|}\hline \begin{array}{c}\text { Work } \\\text { Task }\end{array} & 1 & 2 & 3 & 4 & 5 & 6 & 7 \\\hline \text { A } & 0.12 & 0.17 & 0.19 & 0.11 & 0.15 & 0.16 & 0.20 \\\hline \text { B } & 0.91 & 0.95 & 0.97 & 0.88 & 0.86 & 0.80 & 0.94 \\\hline \text { C } & 1.52 & 1.48 & 1.40 & 1.60 & 1.65 & 1.52 & 1.47\\\hline\end{array}$

a. If the performance rating factor for A = 1.15, B = 1.0 and C = 0.85, determine the normal time for the job.
b. If personal allowance is 7%, fatigue allowance is 12%, personal delay allowance is 9% and avoidable delay is 4 minutes, determine the standard time for the job.

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Definitions:

Net Operating Income

A company's total profit from its operations, excluding non-operating income and expenses, such as taxes and interest.

Total Sales Dollars

The complete amount of revenue generated by a company from sales activities within a specific period, measured in currency.

Contribution Format

A type of income statement format that separates fixed and variable costs, emphasizing the contribution margin.

Income Statement

A financial report detailing a company's income, costs, and gains for a given time frame.