Monte Services, 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 | 4.00 hour | |
| Hourly wage rate | $12 | |
| Payroll taxes | 13% of wage rate | |
| Setup and downtime | 7% of actual labor time | |
| Cleanup and rest periods | 26% of actual labor time | |
| Fringe benefits | 24% of wage rate |
A Determine the standard direct labor hours per oil change.
(Round answer to 2 decimal places, e.g. 1.25.)
(b) Determine the standard direct labor hourly rate. (Round answer to 2 decimal places, e.g. 1.25.)