Monte Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been collected from time and motion studies conducted over the past month.

Actual time spent on the brake repairs		5 hours
Hourly wage rate		$15
Payroll taxes		20% of wage rate
Setup and downtime		7% of actual labor time
Cleanup and rest periods		35% of actual labor time
Fringe benefits		20% of wage rate

(a)

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Your answer is correct.

Determine the standard direct labor hours per brake repairs. (Round answer to 2 decimal places, e.g. 1.25.)

Standard direct labor hours per brake repair

hours

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(b)

Determine the standard direct labor hourly rate. (Round answer to 2 decimal places, e.g. 1.25.)

Standard direct labor hourly rate

$

Standard direct labor cost per brake repair =