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, the formula to compute the standard time is (OT)(PRF)(F).

Question

Quizplus · Accepted Answer

The correct formula to compute the standard time also includes the percentage allowance based on time worked (PFD), so it should be: Standard Time = (OT)(PRF)(F) + Allowances. The allowances are often calculated as a percentage of the basic time and are added to account for personal needs, fatigue, and delay, making the formula incomplete without considering PFD.

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