The average observed time for a given job is 10 minutes. The performance rating is 80%, and allowances are set by contract at 8%. What is the standard time?
A) 8.70 minutes
B) 8.89 minutes
C) 10.00 minutes
D) 19.00 minutes
E) 7.36 minutes

Question

Quizplus · Accepted Answer

The standard time is calculated by adjusting the observed time for performance and allowances. The formula is: Standard Time = (Observed Time * Performance Rating) / (1 - Allowance). Here, it is (10 * 0.80) / (1 - 0.08) = 8.70 minutes.

The Average Observed Time for a Given Job Is 10