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. 4.95 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?
3. A work-sampling study was conducted of assembly operations. The results of the study are:
Activity Percentage of Worker's Time
Assemble products 85%
Allowance 15
If the workers who were performing the operation during the study each produced an average of 100 products per eight-hour shift and received a performance rating of 1.15, what is the labor standard per product?
Learning Curve Application
4. A machine shop has received an order to manufacture 10 large drum rollers. After examining the design of the rollers, the production engineer expects 55 labor-hours to be required for the first drum roller and a learning rate of 75 percent. The shop's standard charge (including overhead and profit) for this type of job in $60 per labor-hours required.
a. How many total labor-hours should this job require?
b. How much should the machine shop charge the customer for this order?
c. The customer has just called and would like to know how much it would be charged for an additional 5 drum rollers. How many additional labor-hours should this require? What should be the additional charge to the customer?