Wildhorse Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been collected from time and motion studies conducted over the past month. Actual time spent on the brake repairs Hourly wage rate Payroll taxes Setup and downtime Cleanup and rest periods Fringe benefits (a) 3 hours $15 20% of wage rate 6% of actual labor time. 34% of actual labor time 25% of wage rate Determine the standard direct labor hours per brake repairs. (Round answer to 2 decimal places, eg. 1.25) Standard direct labor hours per brake repair hours

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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Wildhorse Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been collected
from time and motion studies conducted over the past month.
Actual time spent on the brake repairs
Hourly wage rate
Payroll taxes
Setup and downtime
Cleanup and rest periods
Fringe benefits
(a)
3 hours
$15
20% of wage rate
6% of actual labor time
34% of actual labor time:
25% of wage rate
Determine the standard direct labor hours per brake repairs. (Round answer to 2 decimal places, eg. 1.25.)
Standard direct labor hours per brake repair
hours
Transcribed Image Text:Current Attempt in Progress Wildhorse Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been collected from time and motion studies conducted over the past month. Actual time spent on the brake repairs Hourly wage rate Payroll taxes Setup and downtime Cleanup and rest periods Fringe benefits (a) 3 hours $15 20% of wage rate 6% of actual labor time 34% of actual labor time: 25% of wage rate Determine the standard direct labor hours per brake repairs. (Round answer to 2 decimal places, eg. 1.25.) Standard direct labor hours per brake repair hours
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