Rapid Repair Services, Inc. is trying to establish the standard labour cost of a typical oil change.

Rapid Repair Services, Inc. is trying to establish the standard labour 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…………………………………1.0 hour Hourly wage rate…………………………………………………….$12.00 Payroll taxes………………………………………………10% of wage rate Set-up and downtime………………………….. 20% of actual labour time Cleanup and rest periods……………………….. 30% of actual labour time Fringe benefits…………………………………………….25% of wage rate Instructions (a) Determine the standard direct labour hours per oil change. (b) Determine the direct labour hourly rate. (c) Determine the direct labour cost per oil change. (d) If an oil change took 1.6 hours at the standard hourly rate, what was the direct labour quantity variance?

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