Exercise 23-4 (Part Level Submission) Monte Services, Inc. is trying to establis

Question

Exercise 23-4 (Part Level Submission) 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 Hourly wage rate Payroll taxes Setup and downtime Cleanup and rest periods Fringe benefits 3.0 hour $13 19% of wage rate 12% of actual labor time 32% of actual labor time 23% 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 labour hour per brake repair :

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

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