The auto repair shop of Empire Motor Sales uses standards to control labor time and labor cost in the shop. The standard time for a motor tune-up is 3.5 hours. The record showing time spent in the shop last week on tune-ups has been misplaced; however, the shop supervisor recalls that 70 tune-ups were completed during the week and the controller recalls that the labor rate variance on tune-ups was $81, favorable. The shop has a set standard labor rate of $7 per hour for tune-up work. The total labor variance for the week on tune-up work was $87, unfavorable. The actual hourly rate of pay for tune-up work last week was: Multiple Choice $7.30 per hour cannot be computed with the given information $6.70 per hour $7.00 per hour The Malcolm Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard direct labor-hours (DLHs). The standards call for 4 hours of direct labor per unit produced. The following data pertain to the company's manufacturing overhead for the month of July: $28,490 Actual fixed manufacturing overhead costs incurred Denominator activity Number of units produced Budget variance 6,320 DLHS 3,300 units $3,210 Unfavorable The Fixed component of the predetermined overhead rate for June is: (Round your answer to 2 decimal places.) Multiple Choice $4.51 a $4.11 $4.77 $4.00 The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of August: Actual cost of direct material purchased and used: $85,400 Material price variance: $12,200 unfavorable Total materials variance: $26,000 unfavorable Standard cost per pound of material: $3 Standard cost per direct labor-hour: $5 Actual direct labor-hours: 9,100 hours Labor efficiency variance: $4,000 favorable Standard number of direct labor-hours per unit of Roff: 3 hours Total labor variance: $550 unfavorable The labor rate variance was: Multiple Choice $4,550 unfavorable $3,450 favorable $4,550 favorable $3,450 unfavorable