Engines Done Right Co. is trying to establish the standard labor cost of a typical engine tune-up. The following data have been collected from time and motion studies conducted over the past month. Actual time spent on the tune-up 1.0 hour Hourly wage rate $16 Payroll taxes 10% of wage rate Setup and downtime 10% of actual labor time Cleanup and rest periods 20% of actual labor time Fringe benefits 25% of wage rate Determine the standard direct labor hours per tune-up, the standard direct labor hourly rate, the standard direct labor cost per tune-up (standard direct labor cost per oil change).
Engines Done Right Co. is trying to establish the
Actual time spent on the tune-up 1.0 hour
Hourly wage rate $16
Payroll taxes 10% of wage rate
Setup and downtime 10% of actual labor time
Cleanup and rest periods 20% of actual labor time
Determine the standard direct labor hours per tune-up, the standard direct labor hourly rate, the standard direct labor cost per tune-up (standard direct labor cost per oil change).
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