Question

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 repairs 5 hours Hourly wage rate $12 Payroll taxes 20% of wage rate Setup and downtime 11% of actual labor time Cleanup and rest periods 27% of actual labor time Fringe benefits 25% of wage rate Determine the standard direct labor hours per brake repairs.

Answer 1

=7:30hours

Step-by-step explanation:

Standard direct labor hours per brake repair

= 5 Hours+(5*11%+5*27%)

=5 Hours + (0.55 hours + 1.35hours)

=7:30hours