In: Finance
A method has been engineered and an operator has been time studied. The method has produced an average overall time of 2.39 minutes by actual watch timing. The overall pace rating applied to the job was 125%. This company, which uses an incentive system, adds extra time into the production rates to cover personal time, fatigue, and unavoidable delays. The total allowance is 15%. Determine the rated time or normal minutes, the total allowed time or standard minutes, the standard hour rate for the job per 100 units, and the pieces per hour. The labor rate per hour is $23.30. What is the standard labor cost per unit?