Quality Motor Company is an auto repair shop that uses standards to control its labor time and labor cost. The standard labor cost for a motor tune-up is given below:

The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 50 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:

Labor rate variance . . . . . . . . . . . . . . . . . . $150 F

Labor spending variance . . . . . . . . . . . . . $200 U

Required:

1. Determine the number of actual labor-hours spent on tune-ups during the week.

2. Determine the actual hourly pay rate for tune-ups last week. (Round your answer to the nearest cent.)

Transcribed Image Text:

Standard Standard Standard Hours Rate Cost Motor tune-up .. 2.5 $25.00 $62.50