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 | ||
Employee benefits | 25% of wage rate |
(a)
Determine the standard direct labor hours per tune-up. (Round answer to 2 decimal places, e.g. 15.10.)
Standard direct labor hours per tune-up | enter the standard direct labor hours per tune-up rounded to 2 decimal places hours |
5 The following direct labor data pertain to the operations of Sheffield Corp. for the month of November:
Actual labor rate | $12.25 per hr. | ||
Actual hours used | 19,920 | ||
Standard labor rate | $12.00 per hr. | ||
Standard hours allowed | 18,700 |
Calculate the labor variances. Identify whether each variance is favorable or unfavorable.
Labor Price Variance | $enter a dollar amount | select an option | ||
Labor Quantity Variance | $enter a dollar amount | select an option | ||
Total Labor Variance | $enter a dollar amount | select an option |