Compute a labor standard for the operation

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In a time study of a manufacturing operation, the average time to complete a product was 36.5 minutes, the performance rating was 1.20, and the allowances were 60 minutes per eight-hour shift.

a.   Compute a labor standard for the operation.

b.   How many products per eight-hour shift should an experienced operator be expected to produce under ordinary operating conditions.

c.   If the labor rate is $15 per hour, what should the accounting department use as the standard labor cost per product?

Reference no: EM13964894

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