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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?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91639859

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