Factors to be considered in setting a standard for computer/labor hours

By | April 16, 2014

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Firstly, when setting a standard for computer/labor hours the company needs to decide whether it would use an ideal standard which represent the optimum levels of performance under perfect operation conditions or normal standards represent efficient levels of performance which are achievable under normal working conditions.

Secondly in setting the standard for computer/labor hours which is a direct labor to be used in the production process, several other factors need to be taken into considerations: current wage rates, adjusted for anticipated changes such as cost of living adjustments (COLAs).