efficiency standard that is often set via time and motion studies and laboratory experiments regarding the various labor operations needed to produce the finished good. The standard time must incorporate allowances for normal loss of time due to rest periods, machine downtime, and fatigue.It may be computed as follows:

Basic labor time per unit (in hours)                      2.0
Allowance for breaks, fatigue, and
machine, downtime
                                                                        .4
Allowance for rejects                                          .3
Standard hours per unit                                     2.7