Reference no: EM132538817
Question - 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 1 hour
Hourly wage rate $14
Payroll taxes 20% of wage rate
Setup and downtime 6% of actual labor time
Cleanup and rest periods 34% of actual labor time
Fringe benefits 20% of wage rate
Required -
Determine the standard direct labor hours per brake repairs.
Determine the standard direct labor hourly rate.
Determine the standard direct labor cost per brake repair.
If a brake repair took 1.60 hours at the standard hourly rate, what was the direct labor quantity variance?