QUESTION 14

1. The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard labor cost for a motor tune-up is given below:

   	Standard Quantity	Standard Price	Standard Cost
   Motor tune-up	2.5	$25.00	$62.50

   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 price variance	$	150	F
   Labor total variance	$	200	U

   The number of actual labor-hours spent on tune-ups was:

   	A.	145 hours.
   	B.	153 hours.
   	C.	139 hours.
   	D.	137 hours.