Determine the standard direct labor hours

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Monte Services, Inc. is trying to establish the standard labor cost of a typical oil change. The following data have been collected from time and motion studies conducted over the past month.

Actual time spent on the oil change

1.00 hour

Hourly wage rate

$14

Payroll taxes

12% of wage rate

Setup and downtime

8% of actual labor time

Cleanup and rest periods

29% of actual labor time

Fringe benefits

21% of wage rate

Determine the standard direct labor hours per oil change.

Determine the standard direct labor hourly rate.

Determine the standard direct labor cost per oil change.

If an oil change took 1.5 hours at the standard hourly rate, what was the direct labor quantity variance?

Reference no: EM13846040

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