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The auto repair shop of Quality Motor Company uses standards to control the labour time and labour cost in the shop. The standard labour
The auto repair shop of Quality Motor Company uses standards to control the labour time and labour cost in the shop. The standard labour cost for a motor tune-up follows: Standard Cost Job Standard Hours Motor tune-up Standard Rate $21 $84 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 48 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Labour rate variance Total labour variance $128 F 134 U Required: 1. Determine the number of actual labour-hours spent on tuneups during the week. (Round your answer to the nearest whole number.) Actual labour-hours hours 2. Determine the actual hourly rate of pay for tuneups last week. (Hint. A useful way to proceed would be to work from known to unknown data either by using the variance formulas or by using the columnar format shown in Exhibit 11-5.) (Round intermediate calculations to the nearest whole number and final answer to 2 decimal
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