In setting the direct labor quantity standard, estimated time can be derived from
A)published labor rates in benchmark studies.
B)time-and-motion studies.
C)union contracts.
D)payroll records.

Question

Quizplus · Accepted Answer

Time-and-motion studies are the most reliable method for determining the estimated time required to complete a particular task in direct labor quantity standard setting. Published labor rates in benchmark studies, union contracts, and payroll records can provide useful information for direct labor rate standards, but they do not give an accurate estimate of the time required to complete a task.

In Setting the Direct Labor Quantity Standard, Estimated Time Can