A Pilot Work Study Has Been Conducted on a New

question 36

Essay

A pilot work study has been conducted on a new operation with four work elements.The following times,in seconds,were obtained using the continuous method. a.What is the normal time for this operation?
b.If an allowance of 20 percent is used,what is the standard time for this task?
c.What sample size is appropriate for estimating the time for element 3 within + 3 percent of the true mean time with 95 percent confidence (z = 1.96)?

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Definitions:

Denominator Level

The level of activity chosen to allocate fixed costs in absorption costing, often representing capacity or expected production volume.

Variable Overhead Rate

the rate at which variable overhead costs are applied to units of production, often used in calculating the total cost of producing a product.

Fixed Manufacturing

Costs associated with manufacturing that remain constant, regardless of the level of production, such as rent for factory premises.

Variable Overhead

Costs that vary with production volume but cannot be traced directly to each unit produced, such as utilities for the manufacturing plant.