1. Using the time study data collected, develop a standard time for this job. State the standard in parts per hour (carry your answer out to two decimal places)?

2. What is the current weekly nominal capacity for a production worker who works at 120% of standard with an average scrap rate of 2%?

3. Assuming there are 15 workers producing this product what average rate of efficiency must the workers maintain to meet a weekly demand of 2600 units given an average scrap rate of 3%?

4. The sales department is about to sign a contract for 5500 units of this product. The customer is demanding a contract price of $80,000 for the units. If fixed costs (overhead) is assessed at 125% of the sum of direct labor and material cost per unit, and the direct material cost is $1.25 per unit, what is the profit contribution (or loss) to the company for accepting this contract?

Detroit Manufacturing Company (DMC) has developed a product which incorporates new features with a standard product design. A production prototype bas been built and the Methods Department has developed a job design for the production of the new product. Elemental times were taken from DMC's Standard Data System and then checked with a stop-watch stody. DMC works a 8 bour day, 5 days a week and provides workers a 90 minute daily allowance for personal time and other contingencies. Daily standards are calculated as the normal time for the job divided by 1 - % Allowance. Production workers earn $14.25 per hour. Below is a summary of the methods Department's step-waich study. Product #4356 150 cycles timed all time in seconds Element Average Time (sec) Performance Rating (%) 1 2 3 4 5 6 200 70 100 200 70 65 110 100 90 90 120 110