Exercise 25-4 (Part Level Submission) Monte Services, Inc. is trying to establis

Question

Exercise 25-4 (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 ? (a) Your answer is correct. 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 4.32 hours SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Attempts: 1 of 3 used Your answer is correct. Determine the standard direct labor hourly rate. (Round answer to 2 decimal places, e.g. 1.25.) Standard direct labor hourly rate 18.46

Explanation / Answer

Since the first three parts are already answered correctly, I am assuming that answer to only part (d) is required.

(d) Direct Labour Quantity Variance = Standard Rate x (Standard Hours - Actual Hours)

= 18.46 x (4.32 - 3.60)

= 13.29 Favourable Variance

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