Question: 5. Ashipping department that constructs wooden boxes for large switchgear has five direct labor workers. A work sampling study is undertaken, and the following observations

 5. Ashipping department that constructs wooden boxes for large switchgear has

5. Ashipping department that constructs wooden boxes for large switchgear has five direct labor workers. A work sampling study is undertaken, and the following observations of work elements are recorded over a 15-day, 8-hour period: Description Set up and dismantle Construct crates Load switch gear in crates Move materials Count 312 264 204 Idle 324 96 A rating factor of 90% is found. The number of switchgears shipped during this period is 26. This firm uses an allowance value of 10% for work of this kind. Average labor costs $18.75 per hour. (Hints: example 2.16, you should be able to find total hours and standard hours first, and then adjust the standard hours by the rating factor and allowance. Once you calculate the adjusted standard hours for this 26 boxes, you may get how many adjusted standard hours needed for each box) 1. What is the standard labor cost per box? b. Estimate the actual cost. P roportion Hours per element Description Set up and dismantle Construct crates Load switch gear in crates Move materials Idle Total Count 312 264 204 324 96 5. Ashipping department that constructs wooden boxes for large switchgear has five direct labor workers. A work sampling study is undertaken, and the following observations of work elements are recorded over a 15-day, 8-hour period: Description Set up and dismantle Construct crates Load switch gear in crates Move materials Count 312 264 204 Idle 324 96 A rating factor of 90% is found. The number of switchgears shipped during this period is 26. This firm uses an allowance value of 10% for work of this kind. Average labor costs $18.75 per hour. (Hints: example 2.16, you should be able to find total hours and standard hours first, and then adjust the standard hours by the rating factor and allowance. Once you calculate the adjusted standard hours for this 26 boxes, you may get how many adjusted standard hours needed for each box) 1. What is the standard labor cost per box? b. Estimate the actual cost. P roportion Hours per element Description Set up and dismantle Construct crates Load switch gear in crates Move materials Idle Total Count 312 264 204 324 96

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