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Maintenance company established the standard lobor cost of typical engine tune-up. The following data have been collected from time and motion studied over the
Maintenance company established the standard lobor cost of typical engine tune-up. The following data have been collected from time and motion studied over the past month. Actual time spend on the tune-up 1.0 hour $16 10% of wage rate 10% of actual labor time 20% of actual labor time 25% of wage rate Hourly wage rate Payroll taxes setup and downtime cleanup and rest periods Employee benefits 1.Determine the standard direct labor hours per tune-up. 2.Determine the standard direct labor hourly rate. 3.Determine the standard direct labor cost per tune-up. 4.If a tune-up took 1.5 hours at the Standard hourly rate, what was the direct labor quantity varience?
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