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Monte Services, Inc. is trying to establish the
Actual time spent on the oil change | 1.0 hour |
Hourly wage rate | $12 |
Payroll taxes | 10% of wage rate |
Setup and downtime | 20% of actual labor time |
Cleanup and rest periods | 30% of actual labor time |
25% of wage rate |
Instructions
(a) Determine the standard direct labor hours per oil change.
(b) Determine the standard direct labor hourly rate.
(c) Determine the standard direct labor cost per oil change.
(d) If an oil change took 1.6 hours at the standard hourly rate, what was the direct labor quantity variance?
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Managerial Accounting, Binder Ready Version: Tools for Business Decision Making
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