The Arkade Company has decided to use a 15 percent allowance factor based on job time. Calculate the standard time for each work element and for the total job. The frequency equals 1 for all work elements. (Round your answers to 3 decimal places, the tolerance is +/-0.002.)
Work Element Mean Observed Time (minutes) Perfomance Rating Factor ST
1 1.20 0.95
2 1.00 0.85
3 0.80 1.10
4 0.90 1.10
The Arkade Company used a 15 percent allowance factor based on job time and 15 percent allowance based on time worked.
What allowance factor is better when all of the jobs an emlpoyee does are similar and have the same allowance factor?
Compare standard times and units produced per day based on both allowance factors and decide which of them provides the best result.