Labor costs of an auto repair mechanic are seldom based on actual hours worked. Instead, this labor cost is based on an industry average of time estimated to complete a repair job. This means a customer can pay, for example, $120 for two hours of work on a car when the actual time worked was only one hour. Many experienced mechanics can complete repair jobs faster than the industry average. Assume that you are asked to complete such a survey for a repair center. The survey calls for objective input, and many questions require detailed cost data and analysis. The mechanics and owners know you have the survey and encourage you to complete it in a way that increases the average billable hours for repair work. Required Write a one-page memorandum to the mechanics and owners that describes the direct labor analysis you will undertake in completing this survey.
Labor costs of an auto repair mechanic are seldom based on actual hours worked. Instead, this
labor cost is based on an industry average of time estimated to complete a repair job. This means a customer
can pay, for example, $120 for two hours of work on a car when the actual time worked was only
one hour. Many experienced mechanics can complete repair jobs faster than the industry average. Assume
that you are asked to complete such a survey for a repair center. The survey calls for objective input, and
many questions require detailed cost data and analysis. The mechanics and owners know you have the
survey and encourage you to complete it in a way that increases the average billable hours for repair work.
Required
Write a one-page memorandum to the mechanics and owners that describes the direct labor analysis you
will undertake in completing this survey.
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