Exercise 11-4 Monte Services, Inc. is trying to establish the standard labor cos

Question

Exercise 11-4 Monte Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been 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 3.0 hour $13 14% of wage rate 12% of actual labor time 32% of actual labor time 26% of wage rate Determine the standard direct labor hours per brake repairs. (Round answer to 2 decimal places, e.g. 1.2s) Standard direct labor hours per brake repair hours LINK TO TEXT LINK TO TEXT Determine the standard direct labor hourly rate. (Round answer to 2 decimal places, e.g. 1.25.) Standard direct labor hourly rate s

Explanation / Answer

1) Standard direct labour hour per brake :

2) Standard direct labour hourly rate = 13+(13*14%+13*26%) = 18.20 per hour

3) Standard direct labour cost per brake repair = 4.32*18.20 = 78.62

Actual time 3 Setup time (3*12%) 0.36 Cleanup time (3*32%) 0.96 Standard direct labour hour per brake 4.32

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