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Question - Nifty Nail Salon Limited is trying to determine the standard labour cost of a manicure. The following data has been collected after analyzing one month's work: actual time spent on a manicure 1 hour; hourly wage rate $12; payroll taxes 10% of wage rate; set-up and downtime 6% of actual labour time; cleanup and rest periods 18% of actual labour time.
Required -
a) Determine the standard direct labour hours per manicure.
b) Determine the direct labour cost per direct labour hour.
c) If a manicure took 1 hour at the standard hourly rate, what is the direct labour quantity variance on that one manicure?
d) If one employee has an hourly wage rate of $12.50 and she worked 36 hours on completing manicures for the week, what is the direct labour price variance?
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