Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The auto repair shop of Quality Motor Company uses standards to control the labor time and tobor cost in the shop The standard labor cost

image text in transcribed
image text in transcribed
The auto repair shop of Quality Motor Company uses standards to control the labor time and tobor cost in the shop The standard labor cost for a motor tune-up is given below: Standard Standard lours 3.00 standard Rate $7.00 Motor tune-up Cont $21.00 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 250 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Labor rate variance Labor spending variance $ 990 T $3,090 Required: 1. Determine the number of actual labor-hours spent on tune-ups during the week 2. Determine the actual hourly rate of pay for tune-ups last week. (Round your answer to 2 decimal places.) 1 2 Actual labor hours Actual hourly rate hours per hour Dawson voys, Lta, produces a toy called the Maze. The company has recently established a standard cost system to nel control costs and has established the following standards for the Maze toy Direct materials: 7 microns per toy at $0.33 per micron Direct labor: 14 hours per toy at $7,30 per hour During July, the company produced 5,000 Maze toys. The toy's production data for the month are as follows: Direct materials. 75,000 microns were purchased at a cost of $0.30 per micron. 31,250 of these microns were still in inventory at the end of the month Direct labor. 7400 direct labor-hours were worked at a cost of $56,980, Required: 1. Compute the following variances for July (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance), Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount.) a. The materials price and quantity variances. b. The labor rate and efficiency variances. $ 1a Material price variance Material quantity variance tbLabor rate variance Labor efficiency variance 2.250 F U U tu

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions