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.

Actual time spent on the oil change 3.00 hour Hourly wage rate $14 Payroll taxes 12% of wage rate Setup and downtime 9% of actual labor time Cleanup and rest periods 32% of actual labor time Fringe benefits 27% of wage rate

Determine the standard direct labor hours per oil change. (Round answer to 2 decimal places, e.g. 2.75.)

Standard direct labor hours per oil change hours

Determine the standard direct labor hourly rate. (Round answer to 2 decimal places, e.g. 2.75.)

Standard direct labor hourly rate $

Determine the standard direct labor cost per oil change. (Round answer to 2 decimal places, e.g. 2.75.)

Standard direct labor cost per oil change $

If an oil change took 3.5 hours at the standard hourly rate, what was the direct labor quantity variance? (Round answer to 2 decimal places, e.g. 2.75.)

Direct labor quantity variance $ Favorable Unfavorable Neither favorable nor unfavorable