The time study of a work operation at a Red Lobster restaurant yielded an average observed time of 4.0 minutes. The analyst rated the observed worker at 85%. This means the worker performed at 85% of normal when the study was made. The firm uses a 13% allowance factor. Red Lobster wants to compute the normal time and the standard time for this operation.

APPROACH c The firm needs to apply Equations (10-2) and (10-3).