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Supplementary Chapter Aâ€”Work Measurement, Learning Curves, and Standards TRUE/FALSE 1. Job and process analysis should follow work measurement. ANS: F

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2. Normal time needs to be adjusted for personal time and avoidable delays. ANS: F

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3. The performance rating factor and allowances are based upon human judgment. ANS: T

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4. For a time study, it is assumed the distribution of task times follow a Poisson distribution. ANS: F

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5. When timing a work activity with multiple tasks, the general rule is to take the largest sample size estimate and use it for all activities or tasks. ANS: T

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6. Regression analysis is used to predict times based on different attributes of work. ANS: T

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7. Predetermined time standards are advantageous since they avoid needing multiple performance ratings. ANS: T

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8. After developing a pre-determined standards, stop-watch or work-sampling times studies need not be performed. ANS: F

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9. The groups best suited to set work standards are managers with input from industrial engineers. ANS: F

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10. For work sampling, p will never be known exactly since it is the population parameter that is being estimated. ANS: T

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11. A 90% learning curve implies faster learning than an 80% learning curve. ANS: F

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Full file at http://testbank360.eu/test-bank-om-4-4th-edition-collie 12. The learning curve does not apply to supervisory personnel, some skilled craftspeople or jobs that have non-repetitive job tasks. ANS: T

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13. Unavoidable delays should not be included in time studies. ANS: F

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14. A Performance Rating Factor (PRF) of 130% means a worker is slow and needs 30% more time. ANS: F

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15. At an 80% learning rate, if the first unit requires 100 labor hours, the 8th unit will require 64 hours. ANS: F

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MULTIPLE CHOICE 1. The outputs from a work measurement study leads to development of labor and equipment standards that are used for all of the following except a. Estimating workforce capacity b. Fatigue and personal needs allowances c. Determining the cost of new work procedures d. Providing accurate information for scheduling and sequencing ANS: B

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2. A Performance Rating Factor (PRF) of 1.15 means a. The worker is working at a pace that is 15% faster than normal b. The worker is working at a pace that is 15% slower than normal c. The worker is working at a pace that is 15% faster than standard time d. The worker needs to add 15% to the standard time ANS: B

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3. Allowances include time for all of the following except a. Fatigue b. Equipment breakdowns c. Rest periods d. Poor scheduling ANS: D

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4. Which of the following is not part of the general approach to time study? a. Defines and evaluates each task and activity b. Measures and records the time needed to perform each activity over a number of cycles c. Randomly observes work over a period of time to obtain a distribution of activities d. Determines the allowance factor for the work activity ANS: C

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5. All of the following are advantages of using regression analysis to determine standard time except

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Full file at http://testbank360.eu/test-bank-om-4-4th-edition-collie a. b. c. d.

A smaller cycle time is used Avoids the assumption of additive task times Statistically significant variables can be determined Confidence intervals for the prediction can be developed

ANS: A

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6. Predetermined time standards are a. Macronotions b. Available in books and electronic tables c. A quick way to directly add up and get standard time d. Best for old and stable manufactured goods ANS: B

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7. Work standards a. Improve motivation if set by managers b. Increase variability if set by works c. Are best set informally d. Work best when designed by workers ANS: D

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8. Work samplings a. Are based on normal distribution b. Are used for repetitive work activities c. Determine the allowance factor d. Require a systematic (non-random) sample ANS: C

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9. All of following are true regarding learning curves except a. Not used for a pricing strategy b. Are affected by a ratio of manual to machine work c. 80% learning curves exhibit a step initial decline and then level off d. Used in defense industries ANS: A

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10. The ____ states that the cost of doing any repetitive task, work activity or project decreases as the accumulated experience of doing the job increases. a. Learning curve b. Experience curve c. Deming philosophy d. Regression method ANS: B

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11. Which is not a practical issue when using learning curves? a. Incentive systems and bonus plans may increase learning b. Complex intellectual learning will end quicker than learning simple tasks c. A contract phase-out may result in a lengthening of process times d. Keeping groups of employees together reaps productivity benefits ANS: B

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Full file at http://testbank360.eu/test-bank-om-4-4th-edition-collie 12. Personal fatigue and delay allowances are added to ____ to arrive at ____. a. Standard time; normal time b. Standard time; desired time c. Normal time; desired time d. Normal time; standard time ANS: D

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13. A method of randomly observing work over a period of time to obtain a distribution of the activities that an individual or a group of employees performs is called a. learning curve analysis b. a time study c. work sampling d. work measurement ANS: C

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SHORT ANSWER 1. Define work measurement and what it leads to from an operations perspective. ANS: Work measurement is a systematic procedure for the analysis of work and determination of times required to perform key tasks in processes. Work measurement leads to the development of labor and equipment time standards that are used for... · Estimating work-force and equipment capacity · Establishing budgets · Determining what new work procedures will cost · Evaluating time and cost tradeoffs among process design alternatives · Establishing wage-incentive systems · Monitoring and evaluating employee performance and productivity · Providing accurate information for scheduling and sequencing Without accurate time standards, it is impossible to perform these tasks. Standard times are management's anchor in an uncertain operating environment. PTS: 1 2. Define and relate normal time and standard time. ANS: Normal time = Observed Time x Performance Rating Factor or, OT x PRF Normal time is the expected time required to perform some work activity at a normal pace under normal operating conditions and using a prescribed method. A normal pace is a pace that can be consistently performed by the average employee without undue fatigue under normal operating conditions. Typically, three or more highly-trained work study analysts make these independent judgments about "normal" performance and the average PRF. Standard time = Normal Time (1 + Allowance Factor)

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Full file at http://testbank360.eu/test-bank-om-4-4th-edition-collie Standard time is the normal time adjusted for allowances. Allowances include time for labor fatigue and personal needs, equipment breakdowns, rest periods, information delays, etc. Most allowance factors are in the range of 10% to 20%. PTS: 1 3. Explain the use of regression analysis in establishing standard times. ANS: Regression analysis is used to predict times based on different attributes of the work rather than by adding up individual task times. Consider the problem for developing standard time estimates for installing electrical power lines. The regression model obtained from this analysis is: Time = 0.237 + 2.804(Poles) + 0.514(Wire) + 1.09(Cross Arms) + 0.170(Insulators) + 1.50(Guy Wires) If the utility faces a situation in which they estimate installation of 4 poles, 1,500 feet of wire, 7 cross arms, 12 insulators and no guy wires, the predicted time for the job would be: Time + 0.237 + 2.804(4) + 0.514(1,500) + 1.09(7) + 0.170(12) + 1.50(0) = 792.123 hours PTS: 1 4. Define time study and describe the basic procedures for conducting a time study. ANS: Time study is the development of a standard time by observing a task and analyzing it with the use of a stopwatch. The general approach to time study can be described as follows: 1. Define and evaluate each task and activity. 2. Measure and record the time needed to perform each task or activity over a number of cycles. 3. Rate the employee's performance of each task or activity. 4. Use the performance rating to determine the normal task time. 5. Determine the allowance factor for the work activity. 6. Determine the standard time. PTS: 1 5. How do predetermined standards differ from time studies? ANS: Predetermined time standards describe the amount of time necessary to accomplish specific movements (called micromotions), such as moving a human hand a certain distance or lifting a one pound part. These small time estimates have been documented and are available in books and electronic tables. If a job, work activity or task can be broken down into such elemental tasks, an estimate of the normal time is made by adding up these predetermined times. This approach is especially appealing for developing standard times for new manufactured goods and some service tasks. Predetermined time standards were originally developed for labor-intensive use but data sets exist for machine micro-movements such as an automated drill press. PTS: 1 6. Discuss the two different sides of the debate over work standards.

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Full file at http://testbank360.eu/test-bank-om-4-4th-edition-collie ANS: Critics such as W. Edwards Deming have condemned work standards on the basis that they destroy intrinsic motivation in jobs and rob workers of the creativity necessary for continuous improvement. That is certainly true when managers dictate standards in an effort to meet numerical goals set up by their superiors. However, the real culprit in that case is not the standards themselves but managerial style. The old style of managing reflects Taylor's philosophy: Managers and engineers think; workers do what they are told. A total quality approach suggests that empowered workers can manage their own processes with help from managers and professional staff. PTS: 1 7. Define work sampling. Give both manufacturing and service applications. ANS: Work sampling is a method of randomly observing work over a period of time to obtain a distribution of the activities that an individual or a group of employees perform. Work sampling determines the proportion of time spent doing certain activities on a job. Work sampling is based on statistics and, like all statistical procedures, it can suffer from sampling error and lead to erroneous conclusions simply by chance. Work sampling has been used to evaluate the work of nurses, production supervisors, doctors, secretaries, hotel maids, machinists, managers, package delivery employees and students. PTS: 1 8. Explain the concept of learning curves using an 80% learning curve as an example. ANS: The learning curve concept is that direct labor unit cost decreases in a predictable manner as the experience in producing the unit increases. For most people, for example, the longer you play a musical instrument or a video game the better and faster you become. The same is true in assembly operations, which was recognized in the 1920s at Wright-Patterson Air Force Base in the assembly of aircraft. Studies showed that the number of labor hours required to produce the fourth plane was about 80% of the amount of time spent on the second; the eighth plane took only 80% as much time as the fourth; the 16th plane, 80% of the time of the eighth, and so on. PTS: 1 9. Differentiate between an experience curve and the traditional learning curve. ANS: A broader extension of the learning curve is the experience curve. The experience curve states that the cost of doing any repetitive task, work activity or project decreases as the accumulated experience of doing the job increases. The terms "improvement curve," "experience curve" and "manufacturing progress function" are often used to describe the learning phenomenon in the aggregate context. Marketing research, software design, developing engineering specifications for a water plant, accounting and financial auditing of the same client and implementing a software integration project are examples of this broader view. The idea is that as each time experience doubles costs decline by 10%. PTS: 1 10. Discuss several factors that can affect the application of the learning curve or experience curve and/or the amount of learning that occurs.

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Full file at http://testbank360.eu/test-bank-om-4-4th-edition-collie ANS: 1. The LC does not usually apply to supervisory personnel 2. A change in the ratio of indirect labor to direct labor can alter the rate of learning 3. The institution of incentive systems, bonus plans and the like might increase learning 4. Changes in product design, raw material usage, technology, and/or the process may alter the learning rate 5. Humans learn simple tasks quickly and reach a limit â€“ this follows the exponential curve; for complex intellectual tasks learning is less limited and follows an S-shaped curve 6. A contact phase-out might lengthen the processing time for the last units produced because workers want to prolong their income 7. The lack of proper maintenance of tools and equipment can have a negative impact on learning 8. Keeping work groups together reaps productivity benefits, but might stifle innovation 9. The transfer of workers might cause an interruption or regression in learning 10. Learning curves focus on direct labor and ignore the contribution on efficiency of indirect labor PTS: 1

PROBLEM 1. Determine the sample size for the following time study given a standard deviation of four minutes and a 98% probability that the value of the sample mean is within 1.5 minutes? ANS: n = 39 units PTS: 1 2. Determine the sample size for the following time study given a standard deviation of three ounces and a 92% probability that the value of the sample mean is within two ounces? ANS: n=7 PTS: 1 3. For a work sampling study, there is a 95% probability that the processing time of an activity has an error of less than 0.06 minutes. The best estimate we have for "p" is 0.30. Determine the size sample that should be used for this work sampling study. ANS: n = 97 PTS: 1 4. For a work sampling study, there is a 95% probability that the processing time of an activity has an error of less than 0.06 minutes. The best estimate we have for "p" is 0.30. Determine the sample size needed for a work sampling study if no estimate of p is available. ANS: n = 267

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Full file at http://testbank360.eu/test-bank-om-4-4th-edition-collie PTS: 1 5. Consider the following time study data. Observation Cycles (Actual Time in Minutes) Work Task A B C

1 0.12 0.91 1.52

2 0.17 0.95 1.48

3 0.19 0.97 1.40

4 0.11 0.88 1.60

5 0.15 0.86 1.65

6 0.16 0.80 1.52

7 0.20 0.94 1.47

a. If the performance rating factor for A = 1.15, B = 1.0 and C = 0.85, determine the normal time for the job. b. If personal allowance is 7%, fatigue allowance is 12%, personal delay allowance is 9% and avoidable delay is 4 minutes, determine the standard time for the job. ANS: a. 2.37 minutes b. 3.04 minutes PTS: 1 6. A job had a normal time of 2.43 minutes, an allowance of 20% and a forecast demand of 120 units per day. How long should it take to produce one day's output? ANS: 349.9 minutes PTS: 1 7. Consider the work sampling information below. Cycles (Actual Time in Seconds) Work Task Q R S

1 25 40 60

2 30 52 62

3 27 35 50

4 31 42 55

5 22 47 62

6 20 38 58

a. If the performance rating factor for Q = 0.80, R = 1.10 and S = 1.10 and the total allowance is 17%, determine the normal time for the job. b. With the allowance of 17%, determine the output per hour. ANS: a. 130.83 seconds b. 23.5 units per hour PTS: 1

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Full file at http://testbank360.eu/test-bank-om-4-4th-edition-collie 8. Based on data from a work sampling study, an office worker spends 21.5% of his time filing. Over the work sampling period, he was idle 12% of the time. If the worker filed 420 items in a 40-hour work week while performing other activities, and if his performance rating factor for filing was 0.95, determine the standard time, in minutes, that it took him to file an item. ANS: 1.31 minutes PTS: 1 9. An employee was observed over an extended period of time for a work sampling study, with the following results: Activity On the Phone Filing Face-to-Face with Customer Idle

Percentage of Time 30% 35% 25% 10%

Performance Rating Factor 1.15 0.70 1.10 -----

While doing her job in a 40-hour work week, the employee helped 120 face-to-face, walk-in customers. Determine the standard time in minutes that it took her to help each face-to-face walk-in. ANS: 6.05 minutes PTS: 1 10. A yacht manufacturer signed a contract to build five sailboats for a California resort. Assuming an 85% learning curve, how many labor-hours will it take to build all five sailboats if it took 7,000 standard hours to build the original sailboat? ANS: 28,217.7 hours PTS: 1 11. A manufacturer made a commitment to supply 20 units of a product. The first unit took 1,200 hours to make, the second unit took 900 hours and the third unit took 768 hours. How many hours should it take to make the 20th unit? ANS: 457.44 hours PTS: 1 12. A manufacturer made a commitment to supply 20 units of a product. The first unit took 1,200 hours to make, the second unit took 900 hours and the third unit took 768 hours. Determine the total number of hours required to make the first ten (10) items. ANS:

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Full file at http://testbank360.eu/test-bank-om-4-4th-edition-collie 7,578.48 hours PTS: 1 13. Locksmith Inc. has an order from a bank for 50 specially designed safes, one for each bank branch. It is estimated that the first safe will require 75 hours of shop time and a 90% learning curve is expected. The labor rate is $15.00 per hour and the pricing policy of the company is to triple the labor cost of the order. a. How many labor hours should the 50th unit require? b. How many labor hours will the whole order require? c. What is the customer's price for each safe? ANS: a. Labor hours for 50th safe = (75) (.552) = 41.4 b. Labor hours for whole project = (75)(32.14) = 2410.5 = 2411 c. Customer's price per safe = [(2410.5)($15.00)(3)]/50 = 108,472.5/50 = $2,169.45 14. A company manufactures computer parts. They have received an order for 100 custom disc drives. It is estimated that the first drive will take 20 hours of shop time and an 80% learning curve is expected. The labor rate is $15.00 and the pricing policy is to charge 3 times the labor cost. a. b. c. d.

How many hours will the 100th disc drive take? How many hours will the entire order take? What is the price of the entire order? What is the price per unit?

ANS: a. Hours for the 100th disc drive = (20)(.227) = 4.54 b. Hours for entire order = (20)(32.65) = 653 c. Cost of total order = (653)($15.00)(3) = $29,385 d. Price per disc drive = $29,385/100 = $293.85 PTS:

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15. A company manufactures tractors and lawnmowers. They have received an order for six deluxe custom riding lawnmowers for a local golf course. They must develop a cost estimate for the order. It is estimated that the first lawnmower will take 90 hours of shop time and a 75% learning curve is expected. The labor rate is $18.00 per hour and the pricing policy of the company is to charge 2.5 times the cost of labor for the order. a. b. c. d. e.

How many hours should the sixth lawnmower take? How many labor hours should the whole order take? What is the customer's price for the whole order? What is the price per lawnmower? If the original time estimate for the first lawnmower is too low and it actually takes 80 hours for the third lawnmower, what is the labor hour estimate for the first unit?

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Full file at http://testbank360.eu/test-bank-om-4-4th-edition-collie f.

If it actually really takes 80 hours for the third lawnmower, what is the new total labor cost for the entire order?

ANS: a. Labor hours for the sixth lawnmower = (90)(.475) = 42.75 b. Labor hours for entire order = (90)(3.934) = 354.06 c. Labor cost for entire order = (354.06)($18.00) = $6373.08 Customer's price for entire order = ($6,373.08) (2.5) = $15,932.70 d. Price per lawnmower = [($6,373.08)(2.5)]/6 = $15,932.70/6 = $2,655.45 e. (Labor hours for first unit)(.634) = 80 Labor hours for first unit = 80/.634 = 126.183 f.

New labor hours for entire order = (126.183)(3.934) = 496.404 New labor cost for entire order = (496.404)($18.00) = $8,935.27

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16. A furniture manufacturer has an order for 20 custom wine cabinets for a large hotel in Hawaii. It is estimated that the first cabinet will take 100 hours of shop time. An 85% learning curve is expected. The labor rate is $12.00 per hour. The pricing policy is to charge two times the labor cost for the order. a. How many hours will the 20th wine cabinet take? b. How many hours should the whole order take? c. What is the price of each cabinet? ANS: a. Labor hours for the 20th wine cabinet = (100)(.495) = 49.5 b. Labor hours for total order = (100)(12.40) = 1,240 c. Price per wine cabinet = [(1,240)($12.00)(2)]/20 = $1,488 PTS:

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17. The Chester Table Company mass produces quality end tables for motels. They produce 5,000 end tables per week. The owner is trying to determine how many workers he needs. The workers work 40 hours per week but are idle about three percent of the time due to cleaning up their area. Their performance rating is equal to one. The owner has developed these time standards for operations per table: Transporting the table through the plant = 2 minutes Table top = 10 minutes One leg = 4 minutes Finishing = 5 minutes a. How long does it take (in minutes) to produce one table? b. What is the labor standard (in minutes) for this operation? c. What is the minimum number of workers needed to produce 5000 tables in one week?

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Full file at http://testbank360.eu/test-bank-om-4-4th-edition-collie ANS: a. Cycle time for one table = 2 + 10 + 4(4) + 5 = 33 minutes b. Labor standard = 33/(1 - .03) = 34.02 minutes c. Number of workers needed = (5000 tables/week)(34.02 min/table)/(2400 min/week) = 70.88 = 71 workers PTS:

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18. A fast food stand has a thriving business in downtown Portland. They serve 3,500 burgers, 3,000 orders of fries, and 4,000 soft drinks per week. The workers all work 40 hours per week but are idle two percent of the time. The manager wants to try to become more efficient. He has done a time study and found: Elements for One Item take order time takes kitchen to fill order pick up order & put in bag take customerâ€™s money

Minutes 2 5 1 2

It takes 1 additional minute per additional item. The average order size is 3 items. a. b. c. d.

What is the average number of orders per week? What is the average cycle time (in minutes) per order? What is the labor standard (in minutes) per order? How many workers does the manager need per week?

ANS: a. Average number of orders per week = (3,500 + 3,000 + 4,000)/3 = 10,500/3 = 3,500 b. Average cycle time = 2 + 5 + 1 + 2 + 2(1) = 12 minutes c. Labor standard = 12/(1 - .02) = 12.24 minutes d. Number of workers needed = (3500 order/week)(12.24 min/order)/(2400 min/week) = 17.85 = 18 PTS:

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19. The manager at a sewing factory uses a piece-rate pay system. She has just received an order for 600 dresses from the discount house downtown. She is trying to figure out what her costs are for the project. She has conducted a time study and found operations take this long: 2 minutes to sew one sleeve 3 minutes to sew body of the dress 3.5 minutes to hem all unfinished edges 1 minute to attach the collar 3 minutes to attach all buttons The workers must sit idle while they wait for supplies on the conveyor belt for an average of 30 seconds. Their performance rating is equal to one. She pays the workers $6.00 per hour.

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Full file at http://testbank360.eu/test-bank-om-4-4th-edition-collie a. b. c. d.

What is the allowance factor for the operation? What is the labor standard (in minutes) per dress? What is the labor cost per dress? What is the labor cost for the entire order of 600 dresses?

ANS: a. Cycle time = 2(2) + 3 + 3.5 + 1 + 3 = 14.5 minutes Idle time = .5 minutes Allowance factor = .5/(14.5 + .5) = .033 b. Labor standard = 14.5/(l - .033) = 15 minutes c. Labor cost per dress = (15 min/dress)($6.00/hour)/(60 min/hour) = $1.50 d. Total order cost = (600 dresses)($1.50/dress) = $900 PTS:

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