Question

CALCULATOR PRINTER VERSION Exercise 11-4 (Video) Monte Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been collected from time and motion studies conducted over the past month co) Actual time spent on the brake repairs $10 5 hours co) deo) ideo) Hourly wage rate 10% of wage rate Payroll taxes Setup and downtime 11% of actual labor time 27 % of actual labor time Cleanup and rest periods 25% of wage rate Fringe benefits Your answer is correct Determine the standard direct labor hours per brake repairs. (Round arwer to 2 decimal places, e.g. 1.25.) Standard direct labor hours per brake repair 6.90 hours LI TO TERT uNK TO TEXT VIDEO SHLAR EXERCESE Your answer is incorrect. Try again Determine the standard direct labor hourly rate. (Round answer to 2 decimal places, e.g 1.25.) Standard direct labor hourly rate 18.50 VIDEO SIMILAR EXERCESE INK TO TEX LINK TO TEXT

Answer 1

Answer:

1)

Standard direct labor hours per brake repair = Actual time spent + Setup and downtime + Cleanup and rest periods

= 5 + 5*11% + 5*27%

= 6.9 hours

2)
Hourly wage rate	10.00
Add: payroll tax @ 10%	1.00
Add: Fringe benefits @ 25%	2.50
Std hourly rate	13.50
3)
Std direct labor cost per repair:
Std hour per repair( A)	6.90
Multiply: Hourly rate(B)	13.50
Std direct labor cost per repair:(A*B)	93.15
4)Direct labour Qty variance = Std rate (Sstd hours-Actual hours)
13.50 (6.90- 5.60) = 17.55 Favourable