Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 9, Problem 1CMA
MinnOil performs oil changes and other minor maintenance services on cars and trucks. The company advertises that all services are performed within 15 minutes each. On a recent Saturday, 160 cars were serviced, resulting in the following labor variances: rate, $19 unfavorable; efficiency (time), $14 favorable. If MinnOil’s standard labor rate is $7 per hour, determine the actual wage rate per hour and the actual hours worked.
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Monte Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been collected from
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Your answer is correct.
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Ackerman’s Garage uses standards to plan and control labor time and expense. The standard time for an engine tune-up is 3.5 hours, and the standard labor rate is $15 per hour. Last week, 24 tune-ups were completed. The labor efficiency variance was 6 hours unfavorable, and the labor rate variance totaled $81 favorable.
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Calculate the actual direct labor hourly rate paid for tune-up work last week. (Round your answer to 1 decimal place.)
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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
Hourly wage rate
Payroll taxes
Setup and downtime
Cleanup and rest periods
Fringe benefits
(a)
5 hours
$12
20% of wage rate
11% of actual labor time
34% of actual labor time
25% of wage rate
Determine the standard direct labor hours per brake repairs. (Round answer to 2 decimal places, e.g. 1.25.)
Standard direct labor hours per brake repair
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Chapter 9 Solutions
Managerial Accounting
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