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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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