BE11.3 (LO 1), AP Labor data for making one gallon of finished product in Bing Company are as follows. (1) Price-hourly wage rate $14.00, payroll taxes $0.80, and fringe benefits $1.20. (2) Quantity-actual production time 1.1 hours, rest periods and cleanup 0.25 hours, and setup and downtime 0.15 hours. Compute the following. a. Standard direct labor rate per hour. b. Standard direct labor hours per gallon. c. Standard labor cost per gallon. Compute direct materials variances.
BE11.3 (LO 1), AP Labor data for making one gallon of finished product in Bing Company are as follows. (1) Price-hourly wage rate $14.00, payroll taxes $0.80, and fringe benefits $1.20. (2) Quantity-actual production time 1.1 hours, rest periods and cleanup 0.25 hours, and setup and downtime 0.15 hours. Compute the following. a. Standard direct labor rate per hour. b. Standard direct labor hours per gallon. c. Standard labor cost per gallon. Compute direct materials variances.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:BE11.3 (LO 1), AP Labor data for making one gallon of finished product in Bing Company are as follows. (1) Price-hourly wage rate
$14.00, payroll taxes $0.80, and fringe benefits $1.20. (2) Quantity-actual production time 1.1 hours, rest periods and cleanup 0.25
hours, and setup and downtime 0.15 hours. Compute the following.
a. Standard direct labor rate per hour.
b. Standard direct labor hours per gallon.
c. Standard labor cost per gallon.
Compute direct materials variances.
Durin July the company
Expert Solution
Step 1
Labor data is a key aspect in manufacturing that provides insight into cost and efficiency. It includes information like wage rate, taxes, benefits, and time to produce a unit, including downtime and rest periods. Companies use this data to calculate standard labor rates, hours, and costs per unit to assess their production processes.
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