Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Smallman's Garage uses standards to plan and control labor time and expense. The standard time for an engine tune-up is 3.5 hours, and the standard

image text in transcribed Smallman's Garage uses standards to plan and control labor time and expense. The standard time for an engine tune-up is 3.5 hours, and the standard labor rate is \\( \\$ 16 \\) per hour. Last week, 24 tune-ups were completed. The labor efficiency variance was 14 hours unfavorable, and the labor rate variance totaled \\( \\$ 80 \\) favorable. Required: a. Calculate the actual direct labor hourly rate paid for tune-up work last week. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. Calculate the dollar amount of the labor efficiency variance. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting \"F\" for favorable, \"U\" for unfavorable, and \"None\" for no effect (i.e., zero variance). c. Less skilled, lower paid workers took longer than standard to get the work done is the most likely explanation for these two variances

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Foundations and Evolutions

Authors: Michael R. Kinney, Cecily A. Raiborn

8th Edition

9781439044612, 1439044619, 978-1111626822

More Books

Students also viewed these Accounting questions