Brief Exercise 11-3 Labor data for making one gallon of finished product in Bing

Question

Brief Exercise 11-3

Labor data for making one gallon of finished product in Bing Company are as follows. (1) Price—hourly wage rate $14.00, payroll taxes $0.80, and fringe benefits $1.20. (2) Quantity—actual production time 1.1 hours, rest periods and cleanup 0.25 hours, and setup and downtime 0.15 hours.

Compute the following. (Round answers to 2 decimal places, e.g. 1.25.)

(a) Standard direct labor rate per hour.

$

(b) Standard direct labor hours per gallon.

hours (c) Standard labor cost per gallon.

$

Explanation / Answer

Brief Exercise 11-3 Labor data for making one gallon of finished product in Bing

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