Determine the standard direct labor hours per oil change

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Assignment

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

3.0 hour

Hourly wage rate

$14

Payroll taxes

15% of wage rate

Setup and downtime

9% of actual labor time

Cleanup and rest periods

28% of actual labor time

Fringe benefits

24% 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 3.60 hours at the standard hourly rate, what was the direct labor quantity variance?

Reference no: EM131455363

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