An operator working on a forging press produces 710 pieces in an eight hour shift. The company has a standard rate of 0.96 minutes per piece for the drilling press. 1 How many standard hours does the operator earn? 2 What is the operator's efficiency on this shift?
3 If the base rate is R23.80 per hour, calculate the operator's earnings for the day.
4 Calculate the standard piece cost.
5 What is the direct labour cost per piece using the operator's efficiency? 6 Why is there a discrepancy between the standard piece cost and the piece cost at the operator's efficiency and what are the implications of these varying piece costs on the profitability of the organisation?