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 | $ 34.00 | $ 85.00 |
The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 54 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:
Labor rate variance | $ 350 | F |
---|---|---|
Labor spending variance | $ 500 | 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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started