Engines Done Right Co. is trying to establish the standard labor cost of a typical engine tune-up. The following data have been collected from time and motion studies conducted over the past month. $$\begin{array} { l l }
\text { Actual time spent on the tune-up } & 1.0 \text { hour } \
\text { Hourly wage rate } & \$ 16 \
\text { Payroll taxes } & 10 \% \text { of wage rate } \
\text { Setup and downtime } & 10 \% \text { of actual labor time } \
\text { Cleanup and rest periods } & 20 \% \text { of actual labor time } \
\text { Fringe benefits } & 25 \% \text { of wage rate }
\end{array}$$ Instructions
(a) Determine the standard direct labor hours per tune-up
(b) Determine the standard direct labor hourly rate.
(c) Determine the standard direct labor cost per tune-up.
(d) If a tune-up took 1.5 hours at the standard hourly rate what was the direct labor quantity variance?

Question

Engines Done Right Co. is trying to establish the standard labor cost of a typical engine tune-up. The following data have been collected from time and motion studies conducted over the past month. $$\begin{array} { l l } 
\text { Actual time spent on the tune-up } & 1.0 \text { hour } \
\text { Hourly wage rate } & \$ 16 \
\text { Payroll taxes } & 10 \% \text { of wage rate } \
\text { Setup and downtime } & 10 \% \text { of actual labor time } \
\text { Cleanup and rest periods } & 20 \% \text { of actual labor time } \
\text { Fringe benefits } & 25 \% \text { of wage rate }
\end{array}$$ Instructions
(a) Determine the standard direct labor hours per tune-up
(b) Determine the standard direct labor hourly rate.
(c) Determine the standard direct labor cost per tune-up.
(d) If a tune-up took 1.5 hours at the standard hourly rate what was the direct labor quantity variance?

Quizplus · Accepted Answer

The Answer of Engines Done Right Co. is trying to establish the standard labor cost of a typical engine tune-up. The following data have been collected from time and motion studies conducted over the past month. $$\begin{array} { l l } 
\text { Actual time spent on the tune-up } & 1.0 \text { hour } \
\text { Hourly wage rate } & \$ 16 \
\text { Payroll taxes } & 10 \% \text { of wage rate } \
\text { Setup and downtime } & 10 \% \text { of actual labor time } \
\text { Cleanup and rest periods } & 20 \% \text { of actual labor time } \
\text { Fringe benefits } & 25 \% \text { of wage rate }
\end{array}$$ Instructions
(a) Determine the standard direct labor hours per tune-up
(b) Determine the standard direct labor hourly rate.
(c) Determine the standard direct labor cost per tune-up.
(d) If a tune-up took 1.5 hours at the standard hourly rate what was the direct labor quantity variance?

Engines Done Right Co Instructions (A) Determine the Standard Direct Labor Hours Per Tune-Up

Engines Done Right Co Instructions
(A) Determine the Standard Direct Labor Hours Per Tune-Up