A Work Sampling Method Is Used to Determine the Proportion

question 15

Multiple Choice

A work sampling method is used to determine the proportion of the time a worker is idle.The following information was gathered on a random basis. What is the proportion of idle time observed for this worker?

• A)less than or equal to 5%
• B)greater than 5% but less than or equal to 10%
• C)greater than 10% but less than or equal to 20%
• D)greater than 20%

---

Definitions:

Standard Price

The pre-determined cost that is expected to be paid for a specific item or service under normal conditions.

Standard Labour Rate

The predetermined wage rate used for budgeting and variance analysis, representing the expected cost per hour of labor.

Standard Labour Hours

The predetermined amount of labor time that is expected to be necessary to produce one unit of a product or complete a process.

Material Price Variance

The difference between the actual cost of materials and the standard cost, multiplied by the quantities purchased.