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?