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.

Actual time spent on the tune-up		1.0 hour
Hourly wage rate		$16
Payroll taxes		10% of wage rate
Setup and downtime		10% of actual labor time
Cleanup and rest periods		20% of actual labor time
Fringe benefits		25% of wage rate

Determine the standard direct labor hours per tune-up. (Round answer to 1 decimal place, e.g. 15.2.)

Standard direct labor hours per tune-up

hours

Determine the standard direct labor hourly rate. (Round answer to 2 decimal places, e.g. 15.25.)

Standard direct labor hourly rate

$

Determine the standard direct labor cost per tune-up. (Round answer to 2 decimal places, e.g. 15.25.)

Standard direct labor cost per oil change

$

If a tune-up took 1.5 hours at the standard hourly rate, what was the direct labor quantity variance? Identify whether the variance is favorable or unfavorable? (Round answer to 2 decimal places, e.g. 15.25.)

Direct Labor Quantity Variance

$

UnfavorableNot ApplicableFavorable