Wonder-Tire Service completed 200 tire changes, 10 brake jobs, and 24 alignments in an 10- hour day with a crew of eight specialists. A brake specialist costs $14 per hour, a tire changer costs $6 per hour, and an alignment mechanic costs $16 per hour. The materials cost for a day was $2200, and overhead cost was $600. a. What is the shop’s labor productivity if the retail price for each respective service is $70, $160, and $60? b. What is the multifactor productivity, if the crew consisted of two tire changers, 3 brake specialists and 2 alignment mechanics ?
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Wonder-Tire Service completed 200 tire changes, 10 brake jobs, and 24 alignments in an 10-
hour day with a crew of eight specialists. A brake specialist costs $14 per hour, a tire changer
costs $6 per hour, and an alignment mechanic costs $16 per hour. The materials cost for a day
was $2200, and overhead cost was $600.
a. What is the shop’s labor productivity if the retail price for each respective service is $70,
$160, and $60?
b. What is the multifactor productivity, if the crew consisted of two tire changers, 3 brake
specialists and 2 alignment mechanics ?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
