AE22-4 - AE22-4 Feldkamp Services Inc is trying to establish the standard labor cost of a typical oil change The following data have been collected from

AE22-4 - AE22-4 Feldkamp Services Inc is trying to...

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AE22-4 Feldkamp 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 4.0 hour Hourly wage rate $13.00 Payroll taxes 10% of wage rate Setup and downtime 10% of actual labor time Cleanup and rest periods 20% of actual labor time Fringe benefits 25% of wage rate Your answer is correct. Determine the standard direct labor hours per oil change. e.g. 5.1.) hours Explanation Actual service time 4.0 hours Setup and downtime (4.0 × 10%) 0.4 hours Cleanup and rest periods (4.0 × 20%) 0.8 hours Standard direct labor hours per oil change 5.2 hours Determine the standard direct labor hourly rate.
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  • Spring '14
  • Employee Benefit, $1.76, standard direct labor, $13.00 1.30 3.25

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