A work measurement study was carried out in a firm for 10 hours and following information was gather...........

Costing - Phase (I & II) Methods of Costing

A work measurement study was carried out in a firm for 10 hours and following information was gathered:

Units produced 350

Idle time:15%

Performance rating: 120%

Allowance time: 10% of standard time

The standard time for the task was:

1.942 minutes

1.50 minutes

2.5 minutes

None of the above

Units produced=350

Time spent 10 hours

Idle time: 15%

Therefore, observed time per unit in minutes = 10 x 60 x 85%/350 = 1.457

Normal time= 1.457 x 120/100= 1.748 minutes

Allowance time= 10% of standard time

So, standard time= 1.748 x 110/100= 1.923 minutes

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