Compute the standard labor cost per gallon

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Problem - Labor data for making one gallon of ?nished product in Bing Company are as follows.

(1) Price-hourly wage rate $15.50, payroll taxes $0.70, and fringe bene?ts $1.40.

(2) Quantity-actual production time 1.70 hours, rest periods and cleanup 0.30 hours, and setup and downtime 0.20 hours.

Required - Compute the following.

(a) Standard direct labor rate per hour.

(b) Standard direct labor hours per gallon.

(c) Standard labor cost per gallon.

Reference no: EM132734703

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