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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
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: |
Job | Standard Hours | Standard Rate | Standard Cost |
Motor tune-up | 1.80 | $5.50 | $9.90 |
The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 170 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: |
Labor rate variance | $ | 53 | U |
Labor spending variance | $ | 1,285 | U |
Required:
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