Lead time analysis obj. 1 Palm Pals Inc. manufactures toy stuffed animals. The direct labor time required to cut, sew, and stuff a toy is 12 minutes per unit. The company makes two types of stuffed toys—a lion and a bear. The lion is assembled in lot sizes of 40 units per batch, while the bear is assembled in lot sizes of 5 units per batch. Since each product has direct labor time of 12 minutes per unit, management has determined that the lead time for each product is 12 minutes.

Is management correct? What are the lead times for each product?