The actual average observed time for a given job is 10 minutes. The performance rating is 80%, and allowances are set by contract at 10%. What is the time standard?
A) 8.80 minutes
B) 8.88 minutes
C) 10 minutes
D) 19.0 minutes
E) 19.8 minutes

Question

Quizplus · Accepted Answer

The time standard can be calculated as follows: 
Time standard = (Observed time × Performance rating) + Allowances 
Time standard = (10 minutes × 0.80) + 1.0 minute (10% of observed time) 
Time standard = 8.0 minutes + 1.0 minute 
Time standard = 9.0 minutes 
Therefore, the closest option to 9 minutes is B, which is 8.88 minutes.

The Actual Average Observed Time for a Given Job Is