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The fastest time in which a batch of 20 ‘spicy meat special’ sandwiches has been made was 32 minutes, with no hold-ups. However, work studies have shown that, on average, about 8% of the sandwich makers’ time is non-productive and that, in addition to this setup time (getting ingredients together etc.), is 2 minutes.
Required:
If the sandwich-makers are paid $4.50 per hour, what is the attainable standard labor cost of one sandwich?LuckySantB@jwa, welcome to the Opentuition forums. I might have to break up thi answer into pieces. Thirty two minutes given above information suggests an ideal standard given fact normal non-productive time is not included. Normal non-productive time and normal breakdowns, spoilage etc.Should be included in attainable standards calculations.
Given 8% figure for non-productive time, the following valuation is important-
100/92 = 1.08695652173
1.08695652173 X 32 = 34.783 when rounded.
Set-up time also has to be included = 2 minutes.
34.783 + 2 = 36.783 minutes.
36.783/60 = 0.61305 hours.
$4.50 X 0.61305= $2.7587
$2.7587/20 = $0.1379 per sandwich.
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