Question
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
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 Hours | Standard Rate | Standard Cost |
Motor Tune-up | 2.5 | $25 | $62.50 |
The record showing the time spent in the shop last week on
motor tune-ups have 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 | $150F |
Labor Spending Variance | $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.)
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