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Exercise 9-11 Working Backwards from Labor Variances (LO9-5) The auto repair shop of Quality Motor Company uses standards to control the labor time and labor
Exercise 9-11 Working Backwards from Labor Variances (LO9-5) 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 Hours 2.50 Standard Rate $30.00 Standard Cost $75.00 Motor tune-up 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 $ 250 T $ 200 U 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.) 1. 2 Actual labor hours Actual hourly rate hours per hour
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