What was the direct labor quantity variance

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Reference no: EM131914876

Problem

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.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 3.00 hour
Hourly wage rate $12
Payroll taxes 15% of wage rate
Setup and downtime 9% of actual labor time
Cleanup and rest periods 25% of actual labor time
Fringe benefits 25% 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 3.5 hours at the standard hourly rate, what was the direct labor quantity variance?

Reference no: EM131914876

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