Exercise 10-5 (Algo) Working Backwards from Labor Variances [LO10-2] Quality Motor Company established the standard labor cost for a motor tune-up shown below: Motor tune-up Standard Hours 2.50 Standard Rate Standard Cost $ 38.00 $95.00 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop super 58 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 Required: $ 450 F $ 500 U 1. Determine the number of actual labor-hours spent on tune-ups during the week. 2. Determine the actual hourly pay rate for tune-ups last week. Note: Round your answer to 2 decimal places. 1. Actual labor hours 2. Actual hourly rate hours per hour
Exercise 10-5 (Algo) Working Backwards from Labor Variances [LO10-2] Quality Motor Company established the standard labor cost for a motor tune-up shown below: Motor tune-up Standard Hours 2.50 Standard Rate Standard Cost $ 38.00 $95.00 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop super 58 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 Required: $ 450 F $ 500 U 1. Determine the number of actual labor-hours spent on tune-ups during the week. 2. Determine the actual hourly pay rate for tune-ups last week. Note: Round your answer to 2 decimal places. 1. Actual labor hours 2. Actual hourly rate hours per hour
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 10-5 (Algo) Working Backwards from Labor Variances [LO10-2]
Quality Motor Company established the standard labor cost for a motor tune-up shown below:
Motor tune-up
Standard
Hours
2.50
Standard Rate Standard Cost
$ 38.00
$95.00
The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop super
58 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
Required:
$ 450 F
$ 500 U
1. Determine the number of actual labor-hours spent on tune-ups during the week.
2. Determine the actual hourly pay rate for tune-ups last week.
Note: Round your answer to 2 decimal places.
1. Actual labor hours
2. Actual hourly rate
hours
per hour](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F57b69143-0c58-45df-8080-22a56b910cdc%2F162a2b5d-894b-4895-9556-b60c0ea4fcd0%2Fekn8qla_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 10-5 (Algo) Working Backwards from Labor Variances [LO10-2]
Quality Motor Company established the standard labor cost for a motor tune-up shown below:
Motor tune-up
Standard
Hours
2.50
Standard Rate Standard Cost
$ 38.00
$95.00
The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop super
58 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
Required:
$ 450 F
$ 500 U
1. Determine the number of actual labor-hours spent on tune-ups during the week.
2. Determine the actual hourly pay rate for tune-ups last week.
Note: Round your answer to 2 decimal places.
1. Actual labor hours
2. Actual hourly rate
hours
per hour
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