Managerial Accounting: E25-4 Rapid Repair Services, Inc. is trying to establish the standard

Managerial Accounting 
Exercise 25-4 Computer labor quantity variance 
Rapid Repair 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 1.0 hour 
Hourly wage rate $10.00 
Payroll taxes 10% of wage rate 
Setup and downtime 10% of actual labor time 
Cleanup and rest periods 30% of actual labor time 
Fringe benefits 25% of wage rate 

Required: 
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.) 
c. Determine the standard direct labor cost per oil change. (Round answers to 2 decimal places, e.g. 1.25.) 
d. If an oil change took 1.5 hours at the standard hourly rate, what was the direct labor quantity variance? (Round answers to 2 decimal places, e.g. 1.25.)
Powered by