Question

Send to Gradebook Question 2 View Policies Current Attempt in Progress Labor data for making one gallon of finished product in Bing Company are as follows. (1) Price-hourly wage rate $15.00, payroll taxes $0.60, and fringe benefits $1.70. (2) Quantity-actual production time 1.60 hours, rest periods and cleanup 0.30 hours, and setup and downtime 0.20 hours Compute the following (Round answers to 2 decimal places, eg. 1.25.) (a) Standard direct labor rate per hour. $ (b) Standard direct labor hours per gallon. c) Standard labor cost per gallon e Textbook and Media Attempts: 0 of 3 used Sare for at Submit A to Gradeck

Answer 1

Solution a:

Standard direct labor rate per hour = $15 + $0.60 + 1.70 = $17.30 per hour

Solution b:

Standard direct labor hour per gallon = 1.60 + 0.30 + 0.20 = 2.10 hour

Solution c:

Standard labor cost per gallon = Standard hour per gallon * Standard rate per hour = 2.10 * $17.30 = $36.33 per unit