Question
Stephens Marine Repair is trying to establish the standard labor cost of a typical water-cooling pump repair. The following data have been collected from time
Stephens Marine Repair is trying to establish the standard labor cost of a typical water-cooling pump repair. The following data have been collected from time and motion studies conducted over the past 6 months.
Actual time spent on pump repair 1.75 hours
Hourly wage rate $36.00
Payroll taxes 10% of the wage rate
Onsite setup and downtime 5% of actual labor time
Final adjustments and testing 10% of actual labor time
Fringe benefits 15% of the wage rate
Required
(a) Determine the standard direct labor hours per pump repair
(b) Determine the standard direct labor hourly rate.
(c) Determine the standard direct labor cost per pump repair.
(d) If a pump repair took 2.25 hours at the standard hourly rate, what was the direct labor quantity variance?
please help and step by step answer, thank you!
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