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 | 2.50 | $ 30.00 | $ 75.00 |
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 | $ 250 | F |
---|---|---|
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 2 decimal places.)
Please help, I am not understanding what I am doing wrong.
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