Exercise 10-5 (Static) Working Backwards from Labor Variances [LO10-2]

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:

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

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 2 decimal places.)

Exercise 10-5 (Static) Working Backwards from Labor Varlances (LO10-2] 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: Standard Hours Standard Rate Standard Cost $25.80 $62.50 Motor tune-up 2.5 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 varlance data relating to tune-ups: Labor rate variance Labor spending variance $ 150 $ 280 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 2 decimal places.) 1. Actual labor hours Actual hourly rate hours per hour 2