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

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

Standard HoursStandard RateStandard CostMotor tune-up2.20$5.50$12.10

The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 130 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:

Labor rate variance$49ULabor spending variance$1,171U

Required:

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

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