Exercise 15-4 LINK TO TEXT LINK TO TEXT LINK TO TEXT Open Show Work LINK TO TEXT

Question

Exercise 15-4

LINK TO TEXT

LINK TO TEXT

LINK TO TEXT

Open Show Work

LINK TO TEXT

Exercise 15-4

Flounder, Inc. is trying to establish the standard labor cost of a typical oil change. The following data have been collected from time and motion studies conducted over the past month.
Actual time spent on the oil change 1.00 hour Hourly wage rate $14 Payroll taxes 10% of wage rate Setup and downtime 16% of actual labor time Cleanup and rest periods 34% of actual labor time Fringe benefits 25% of wage rate

Explanation / Answer

Answers

Actual time + Setup time + CLeanup time

= 1 hour + ( 1 hour x 16%) + (1 hour x 34%)
= 1.5 hours = Standard direct labor hours

Hourly wage rate = $ 14 + ($14 x 10%) + ($14 x 25%)
Standard direct labor hourly rate = $ 14 + $ 1.4 + $ 3.5 = $ 18.90

= (1.5 hours – 1.70 hours) x $ 18.90
= $ 3.78 UNFAVOURABLE

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.