08 Jun Question Monte Services, Inc. is trying to
Question
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
1.00 hour
Hourly wage rate
$14
Payroll taxes
12% of wage rate
Setup and downtime
8% of actual labor time
Cleanup and rest periods
29% of actual labor time
Fringe benefits
21% of wage rate
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Incorrect answer.
Your answer is incorrect. Try again.
Determine the standard direct labor hours per oil change. (Round answer to 2 decimal places, e.g. 2.75.)
Standard direct labor hours per oil change
Entry field with incorrect answer
hours
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Correct answer.
Your answer is correct.
Determine the standard direct labor hourly rate. (Round answer to 2 decimal places, e.g. 2.75.)
Standard direct labor hourly rate
$Entry field with correct answer
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