Feldkamp Services, Inc. is trying to establish the standard labour 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 |
1.0 hour |
|
Hourly wage rate |
$10 |
|
Payroll taxes |
10% of wage rate |
|
Setup and downtime |
10% of actual labour time |
|
Cleanup and rest periods |
30% of actual labour time |
|
Fringe benefits |
25% of wage rate |
Instructions
(a) Determine the standard direct labour hours per oil change.
(b) Determine the standard direct labour hourly rate.
(c) Determine the standard direct labour cost per oil change.
(d) If an oil change took 1.5 hours at the standard hourly rate, what was the direct labour quantity variance?