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.
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Write My Essay For MeActual time spent on the oil change 2.00 hour
Hourly wage rate $12
Payroll taxes 16% of wage rate
Setup and downtime 10% of actual labor time
Cleanup and rest periods 35% of actual labor time
Fringe benefits 24% of wage rate
(a) Determine the standard direct labor hours per oil change. (Round answer to 2 decimal places, e.g. 1.25.)
Standard direct labor hours per oil change hours
** Require the standard direct labors per oil change hours
(b) Determine the standard direct labor hourly rate. (Round answer to 2 decimal places, e.g. 1.25.)
Standard direct labor hourly rate $
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