Monte Services, Inc. is analyzing the standard labor cost for a typical brake repair. Data from time and motion studies over the past month provide the following information:- **Actual time spent on brake repairs:** 5 hours- **Hourly wage rate:** $12- **Payroll taxes:** 20% of wage rate- **Setup and downtime:** 11% of actual labor time- **Cleanup and rest periods:** 34% of actual labor time- **Fringe benefits:** 25% of wage rate**(a)** Calculation for standard direct labor hours per brake repair:- The calculated standard direct labor hours per brake repair is 7.25 hours.- The answer is confirmed to be correct.**(b)** Calculation for standard direct labor hourly rate:- The determined standard direct labor hourly rate is $17.40.- The answer is validated as correct.This exercise helps establish a standardized approach for calculating labor costs, integrating various influencing factors such as taxes, downtime, and benefits. **Exercise (c): Calculating Standard Direct Labor Cost for Brake Repair**In this section, you are tasked with determining the standard direct labor cost associated with each brake repair. It is essential to ensure precision by rounding your answer to two decimal places, for example, 1.25.**Input Field:**- **Standard direct labor cost per brake repair:** $ [Enter Value Here]Make sure to input the correctly calculated value based on the given guidelines to complete the exercise accurately.

Direct labor cost is the cost incurred (wages) to produce the goods or to provide the services to…

Answered: (c) Determine the standard direct labor…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Dengo Company makes a trail mix in two departments: Roasting and Blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. October data for the Roasting department follow. Beginning work in process inventory Units started and completed Units completed and transferred out Ending work in process inventory Beginning work in process inventory Costs added this period Direct materials. Conversion Total costs to account for Units 4,400 20, 600 25,000 3,800 $314, 760 1,374,948 Direct Materials Conversion Percent Percent Complete Complete 100% 30% 100% $ 124,790 1,689, 708 $ 1,814, 498 70%
Godo
what is the formula to calcuate direct materials % added for beginning wip, started and completed and ending wip as well as converion percent for started nd completed.
Subject: Accounting
Identify the following as elements of first cost or annual operating cost: (a) direct materials, (b) delivery charges, (c) periodic repairs, (d) rework andrebuild, (e) installation cost, (f ) equipment cost.
The 3 simple aspects of inventoriable product fee are direct materials, direct labor, and: (1.5 Points) b. manufacturing overhead. a. fee of items manufactu object object red. d. work in process. C. fee of items sold.
Which of the following statement(s) islare correct? I. Manufacturing overhead includes all manufacturing costs except direct labor and direct materials II. Prime costs consist of direct material and direct labor. Conversion cost is essentially direct labor O A. I only O B. Il only O C. Both I & II D. Neither I nor II
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Explain the following - A. Recording labour costs involves two interlocking double entries, reflecting the two aspects of labour costs to be accounted for. Explain. Give examples B. Should overtime payments be treated as direct labour, or as overhead?
In traditional approach, overheads are absorbed based on: a. Machine hours b. Direct labour c. All the options listed d. Direct wages
for 11; 12; 13; and 15 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? Note: Round intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal place. 12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? Note: Round intermediate calculations and your "Percentage" answers to 2 decimal places. 13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? Note: Round intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. 15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? Note: Round intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal place.
The following information was taken from the annual manufacturing overhead cost budget of Indigo Company: Variable manufacturing overhead costs Fixed manufacturing overhead costs Normal production level in labour hours Normal production level in units Standard labour hours per unit $36,660 $19,500 15,600 3,900 During the year, 3,700 units were produced, 15,000 hours were worked, and the actual manufacturing overhead was $55,980. Actual fixed manufacturing overhead costs equalled the budgeted fixed manufacturing overhead costs. Overhead is applied based on direct labour hours.

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(c) Determine the standard direct labor cost per brake repair. (Round answer to 2 decimal places, e.g. 1.25.) Standard direct labor cost per brake repair