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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.

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.

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).

 
manish jayant 10-Sep-2020

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