Exercise 25-4 Exercise 25-4 Monte Services, Inc. is trying to establish the stan
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Question
Exercise 25-4
Exercise 25-4
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 repair 5.0 hour Hourly wage rate $14 Payroll taxes 17% of wage rate Setup and downtime 8% of actual labor time Cleanup and rest periods 30% of actual labor time Fringe benefits 24% of wage rate Determine the standard direct labor hours per brake repair. (Round answer to 2 decimal places, e.g. 1.25.)
Standard direct labor hours per brake repair hours
Explanation / Answer
Standard direct labor hours per brake repair = 5+(5*8%)+(5*30%)= 6.9 hours
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