Reference no: EM132510636
Monte Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been collected from time and motion studies conducted over the past month.
Actual time spent on the brake repairs 5 hours
Hourly wage rate $15
Payroll taxes 20% of wage rate
Setup and downtime 7% of actual labor time
Cleanup and rest periods 35% of actual labor time
Fringe benefits 20% of wage rate
Question 1: Determine the standard direct labor hours per brake repairs: Standard direct labor hours per brake repair _____ hours
Question 2: Determine the standard direct labor hourly rate: Standard direct labor hourly rate _$_____
Question 3: Determine the standard direct labor cost per brake repair:
Question 4: If a brake repair took 5.60 hours at the standard hourly rate, what was the direct labor quantity variance