### Quality Motor Company: Labor Time and Cost Control Analysis**Overview:**Quality Motor Company is an auto repair shop that uses standard costing methods to manage labor time and labor costs effectively. Below is the standard labor cost information for a motor tune-up:- **Motor Tune-Up:** - **Standard Hours:** 2.50 - **Standard Rate:** $38.00 - **Standard Cost:** $95.00However, the record of time spent on motor tune-ups last week has been misplaced. The shop supervisor recollects that 58 tune-ups took place during the week, and the following variance data is noted by the controller:- **Labor Rate Variance:** $450 F (Favorable)- **Labor Spending Variance:** $500 U (Unfavorable)**Required Calculations:**1. **Determine the Number of Actual Labor-Hours Spent on Tune-Ups During the Week:** - Use the given variances to calculate the total actual labor-hours.2. **Determine the Actual Hourly Pay Rate for Tune-Ups Last Week:** - Calculate using the provided variances and the number of tune-ups.**Calculation Table:**| 1. Actual Labor Hours | ______ hours ||-------------------------|---------------|| 2. Actual Hourly Rate | ______ per hour |**Instructions:**- Provide your answers rounded to two decimal places.

Direct labour spending variance: direct labour variance is variance analysis done by the company to…

Answered: Determine the number of actual…

Determine the number of actual labor-hours spent on tune-ups during the week E Determine the actual hourly pay rate for tune-ups last week. (Round your answer to 2 decimal places.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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### Quality Motor Company: Labor Time and Cost Control Analysis

**Overview:**
Quality Motor Company is an auto repair shop that uses standard costing methods to manage labor time and labor costs effectively. Below is the standard labor cost information for a motor tune-up:

- **Motor Tune-Up:**
- **Standard Hours:** 2.50
- **Standard Rate:** $38.00
- **Standard Cost:** $95.00

However, the record of time spent on motor tune-ups last week has been misplaced. The shop supervisor recollects that 58 tune-ups took place during the week, and the following variance data is noted by the controller:

- **Labor Rate Variance:** $450 F (Favorable)
- **Labor Spending Variance:** $500 U (Unfavorable)

**Required Calculations:**

1. **Determine the Number of Actual Labor-Hours Spent on Tune-Ups During the Week:**
- Use the given variances to calculate the total actual labor-hours.

2. **Determine the Actual Hourly Pay Rate for Tune-Ups Last Week:**
- Calculate using the provided variances and the number of tune-ups.

**Calculation Table:**

| 1. Actual Labor Hours | ______ hours |
|-------------------------|---------------|
| 2. Actual Hourly Rate | ______ per hour |

**Instructions:**
- Provide your answers rounded to two decimal places.

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