EXERCISE 10-5 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 Standard. Standard Hours Motor tune-up 2.5 Rate $25.00 Cost $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. Labor spending variance. $150 F $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.) (Hint: A useful way to proceed would be to work from known to unknown data either by using the variance formulas in Exhibit 10-7 or by using the columnar format shown in Exhibit 10-6.)