Labor costs of an auto repair mechanic are seldom based on actual hours worked. Instead,...
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Accounting
Labor costs of an auto repair mechanic are seldom based on actual hours worked. Instead, this labor cost is based on an industry average of time estimated to complete a repair job. This means a customer can pay, for example, $ for two hours of work on a car when the actual time worked was only one hour. Many experienced mechanics can complete repair jobs faster than the industry average. Assume that you are asked to complete a survey on time spent to complete common repair jobs for a repair center. The survey calls for objective input, and many questions require detailed cost data and analysis. The mechanics and owners know you have the survey and encourage you to complete it in a way that increases the average billable hours for repair work.
Required:
Write a onepage memorandum to the mechanics and owners that describes the direct labor analysis you will undertake in completing this survey.
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