Determine standard direct labor cost per setup and downtime

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Reference no: EM133346893

Question: Lawn Pros Yard Services, Inc. is trying to establish the standard labor cost of a typical lawn that they cut for their customers each week. The following data have been collected from time and motion studies over the last several months: Actual time spent on cutting .75 hour
Hourly wage rate $20.00 Payroll taxes 7% of wage rate Equipment setup and downtime 10% of actual labor time Cleanup and rest periods 10% of actual labor time Fringe benefits 20% of wage rate

1. Determine the standard direct labor cost per setup and downtime

2. If a new customer's lawn took 1.25 hours to cut at the standard hourly rate, what was the direct labor quantity variance?

Reference no: EM133346893

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