Question
Ginas Auto Repair Shop uses standards to control labor time and labor cost in the shop. The standard time for a motor tune-up is 3
Ginas Auto Repair Shop uses standards to control labor time and labor cost in the shop. The standard time for a motor tune-up is 3 hours. The record showing time spent in the shop last week on tune-ups has been misplaced; however, the shop supervisor recalls that 40 tune-ups were completed during the week and the controller recalls that the labor rate variance on tune-ups was $100, unfavorable. The shop has a set standard labor rate of $12 per hour for tune-up work. The total (spending) labor variance for the week on tune-up work was $160 unfavorable.
The actual hourly rate of pay for tune-up work last week was:
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