Plush Pals Inc. manufactures toy stuffed animals. The direct labor time required to cut, sew, and stuff

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Plush Pals Inc. manufactures toy stuffed animals. The direct labor time required to cut, sew, and stuff a toy is 8 minutes per unit. The company makes two types of stuffed toys—a lion and a bear. The lion is assembled in lot sizes of 50 units per batch, while the bear is assembled in lot sizes of 5 units per batch. Since each product has direct labor time of 8 minutes per unit, management has determined that the lead time for each product is 8 minutes. Is management correct? What are the lead times for each product?

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Managerial Accounting

ISBN: b010ikdqzm

10th Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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