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 5 hours
Hourly wage rate $14
Payroll taxes 20% of wage rate
Setup and downtime 8% of actual labor time
Cleanup and rest periods 30% of actual labor time
Fringe benefits 25% of wage rate

Required:
a. Determine the standard direct labor hours per brake repairs.
b. Determine the standard direct labor hourly rate.
c. Determine the standard direct labor cost per brake repair.
d. If a brake repair took 3.60 hours at the standard hourly rate, what was the direct labor quantity variance?

In march 2018, the phillips tool company signed two purchase commitments. the first commitment requires phillips to purchase inventory for $110,000 by june 15, 2018. the second commitment requires the company to purchase inventory for $160,000 by august 20, 2018. the company's fiscal year-end is june 30. phillips uses a periodic inventory system. the first commitment is exercised on june 15, 2018, when the market price of the inventory purchased was $90,000. the second commitment was exercised on august 20, 2018, when the market price of the inventory purchased was $125,000. required: prepare the journal entries required on june 15, june 30, and august 20, 2018, to account for the two purchase commitments. assume that the market price of the inventory related to the outstanding purchase commitment was $144,000 at june 30. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)