The correct answer is A. Standard labour time indicates the time in hours needed for a specific process.
Standard labour time is the amount of time that it should take a worker to complete a specific task, under normal working conditions. It is determined by taking into account the time it takes to perform each step in the task, as well as the time it takes to move from one step to the next.
Standard labour time is used to set production goals and to track progress towards those goals. It is also used to calculate labor costs and to set prices for products and services.
Option B is incorrect because standard labour time is not always based on past experience. It can also be based on time studies, which are conducted to measure the actual time it takes to perform a task.
Option C is incorrect because due allowance should be given to fatigue and tool setting when setting standard labour time. Fatigue can cause workers to take longer to complete tasks, and tool setting can also add to the time required to complete a task.
Option D is incorrect because the production manager does provide input in setting the labour time standards. The production manager is responsible for ensuring that the standard labour times are realistic and achievable.