Operations Management
Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Chapter 10, Problem 12DQ
Summary Introduction

To determine: The manner in which the time of a drill operator is calculated who is idle for some time at the commencement of every job; waiting for the set-up worker to finish the setup.

Introduction:  Waiting time is a term used in cost accounting that refers to the amount of time a job task is being idle before the order is processed or the machine is setup. Waiting time affects both the producer and the consumer.

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ene is working with the operations manager to determine what the standard labor cost is for a spice chest. He has watched the process from start to finish and taken detailed notes on what each employee does. The first employee selects and mills the wood, so it is smooth on all four sides. This takes the employee 1 hour(s) for each chest. The next employee takes the wood and cuts it to the proper size. This takes 43 minutes. The next employee assembles and sands the chest. Assembly takes 3 hour(s). The chest then goes to the finishing department. It takes 3 hour(s) to finish the chest. All employees are cross-trained so they are all paid the same amount per hour, $17.62.  What is the standard cost per chest for labor? Round to the nearest penny, two decimal places.
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