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:

Quantity of Labor

The total hours of labor supplied by workers or the number of workers employed in the production of goods and services at a given time.

Wage

A wage is the amount of money paid to an employee by an employer in exchange for work performed, typically expressed on an hourly, daily, or piecework basis.

Monopsonistic Cartel

A market condition where there is only one buyer for a product or service, giving them significant power over sellers.

Antitrust Laws

Rules and regulations prohibiting actions that restrain, or are likely to restrain, competition.