If OT = the mean observed time, PRF = the performance rating factor, F = the frequency of occurrence, and PFD = the percentage allowance based on time worked, what is the formula to compute the standard time?
A) (OT)(PRF)(F)
B) (OT)(PRF)(F)(1 + PFD)
C) (OT)(PRF)(F) / (1 - PFD)
D) (OT)(PRF) / (F)
E) (OT)(PRF)(F) / (1 + PFD)

Question

Quizplus · Accepted Answer

The standard time is calculated by adjusting the normal time (OT * PRF * F) for allowances, which is done by dividing by (1 - PFD).

If OT = the Mean Observed Time, PRF = the Performance