Industry average of time estimated to complete repair job

Assignment Help Operation Management

Reference no: EM131030761

Labor costs of an auto mechanic are seldom based on actual hours worked. (Many of us realize this when we have serviced our automobiles). Instead, the amount paid a mechanic is based on an industry average of time estimated to complete a repair job. The repair shop bills the customer for the industry average amount of time at the repair center’s billable cost per hour. This means a customer can pay, for example, $120 for two hours if work on the car when the actual time was only one hour. Many experienced mechanics can complete repair job faster than the industry average. The average data are compiled by engineering studies and surveys conducted in the auto repair business.

Assume that you, as the auto shop’s accountant, are asked to complete such a survey for a repair center. The survey calls for objective input, and many questions require detailed cost data and analysis. The mechanics and owners know you have the survey and encourage you to complete it in a way that increases the average billable hours for repair work.

For this discussion, describe the direct labor analysis you would undertake to complete this survey and why you would take that particular approach to gathering data.

Reference no: EM131030761

Questions Cloud

Show the calculation of the gain : Equipment that cost $80,000 and has accumulated depreciation of $63,000 is exchanged for similar equipment with a fair value of $35,000 and $15,000 cash is received. The exchange lacked commercial substance. Directions: Respond to these questions ..

Should a court confirm the award or set it aside : The younger brother also seeks to have the award set aside on the basis of improper conduct in that matters subject to arbitration were discussed between the father and older brother without the younger brother's being present. Should a court conf..

What is the approximate variance of the original portfolio : Suppose the variance of the market is 0.04. What is the approximate variance of the original portfolio? What specific tips should you take to rebalance the portfolio, assuming no security position is completely eliminated?

Determine the rate at which heat needs to be removed : If the temperature of the balls after quenching is 74°C, determine the rate at which heat needs to be removed from the water in order to keep its temperature constant at 50°C.

Industry average of time estimated to complete repair job : Labor costs of an auto mechanic are seldom based on actual hours worked. (Many of us realize this when we have serviced our automobiles). Instead, the amount paid a mechanic is based on an industry average of time estimated to complete a repair job. ..

Provide a detailed structure proposed for the report : Describe the topic area and objectives of the planned report. Provide a detailed structure proposed for the report - similar to a table of contents without page numbers

What are challenges-risks of food with integrity strategy : How does Chipotle's move towards the "A Model" restaurants impact return on assests, assuming that these resaurants generate the same amount of sales as a traditional restaurant? Which of the following strategy elements of chipotle can be considered ..

Market rate of interest on similar notes : Whiley Company issued a $100,000, five-year, 10 percent note to Security Company on January 2, 2014. Interest was to be paid annually each December 31. The stated rate of interest reflected the market rate of interest on similar notes.

What kind of business situations : What kind of 'business situations' have you observed that might fit into the media story's definition of "when to bargain vs. when to fight?" Be as specific in your description as you feel will allow other students to 'understand your decision situat..

User Account

All Pages