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Pina, Inc. is trying to establish the standard labor cost of a typical oil change. The following data have been collected from time and motion
Pina, 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 1 hour Hourly wage rate $14 Payroll taxes 10% of wage rate Setup and downtime 17% of actual labor time Cleanup and rest periods 33% of actual labor time Fringe benefits 20% of wage rate (a) Determine the standard direct labor hours per oil change. (Round answer to 2 decimal places, e.g. 1.25.) Standard direct labor hours per oil change hours
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