Question
Nifty Nail Salon Limited is trying to determine the standard labour cost of a manicure. The following data has been collected after analyzing one months
Nifty Nail Salon Limited is trying to determine the standard labour cost of a manicure. The following data has been collected after analyzing one months work: actual time spent on a manicure 1 hour; hourly wage rate $11; payroll taxes 8% of wage rate; set-up and downtime 5% of actual labour time; cleanup and rest periods 15% of actual labour time.
1. Determine the standard direct labour hours per manicure.
2. Determine the direct labour cost per direct labour hour.
3.If a manicure took 1 hour at the standard hourly rate, what is the direct labour quantity variance on that one manicure?
4.If one employee has an hourly wage rate of $11.50 and she worked 31 hours on completing manicures for the week, what is the direct labour price variance?
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