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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 2.50 $ 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.

1. Actual labor hours 125 (incorrect) hours
2. Actual hourly rate $10.00 (incorrect) per hour

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