Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Chapter 23, Problem 1CMA
MinnOil performs oil changes and other minor maintenance services on cars and trucks. The company advertises that all services are performed within 15 minutes each. On a recent Saturday, 160 cars were serviced, resulting in the following labor variances: rate, $19 unfavorable; efficiency (time), $14 favorable. If MinnOil’s standard labor rate is $7 per hour, determine the actual wage rate per hour and the actual hours worked.
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Monte Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been collected from
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Actual time spent on the brake repairs
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Payroll taxes
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(a)
Your answer is correct.
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20% of wage rate
11% of actual labor time
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7.25
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Monte 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)
5 hours
$12
20% of wage rate
11% 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, e.g. 1.25.)
Standard direct labor hours per brake repair
hours
Blossom 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)
1 hour
$11
10% of wage rate
5% of actual labor time
25% of actual labor time
20% of wage rate
Determine the standard direct labor hours per brake repairs. (Round answer to 2 decimal places, e.g. 1.25.)
Standard direct labor hours per brake repair
hours
1
SU
Chapter 23 Solutions
Financial And Managerial Accounting
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