Question
Flannery Muffler Shop has budgeted to repair 10,000 mufflers during 20X1. Each repair job takes 1.5 hours, and employees are paid $24 per hour. During
Flannery Muffler Shop has budgeted to repair 10,000 mufflers during 20X1. Each repair job takes 1.5 hours, and employees are paid $24 per hour. During 20X1, Flannery actually repaired 9,425 mufflers, and the salary expense amounted to $358,000. How much did Flannery spend on labor compared to what SHOULD have been spent given that 9,425 mufflers were repaired? (Note: Remember that each repair job is supposed to take 1.5 hours of labor.)
A. Spent $12,000 MORE than should have been spent
B.Spent $18,700 LESS than should have been spent
C.Spent $12,000 LESS than should have been spent
D.Spent $18,700 MORE than should have been spent
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