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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
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 Hourly wage rate 1.0 hour $22 10% of wage rate 10% of actual labor time Payroll taxes Setup and downtime Cleanup and rest periods 20% of actual labor time Employee benefits 25% of wage rate (a) determine the standard direct labor hours per tune-up. (Round answer to 2 decimal places, e.g. 15.10.) Standard direct labor hours per tune-up hours (b) Determine the standard direct labor hourly rate. (Round answer to 2 decimal places, e.g. 15.25.) Standard direct labor hourly rate $ eTextbook and Media Save for Later Attempts: unlimited Submit Answer (c) 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 eTextbook and Media Save for Later Attempts: unlimited Submit Answer (d) If a tune-up took 1.6 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 $ eTextbook and Media Save for Later
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