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 $ 25.00 1. Actual labor hours 2. Actual hourly rate The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls 50 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: $ 150 F $ 200 U Standard Cost $ 62.50 Labor rate variance Labor spending variance Required: 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. hours per hour

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Chapter1: Financial Statements And Business Decisions
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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
$ 25.00
1. Actual labor hours
2. Actual hourly rate
The record showing the time spent in the shop last week on motor tune-ups has been
misplaced. However, the shop supervisor recalls 50 tune-ups were completed during
the week, and the controller recalls the following variance data relating to tune-ups:
$ 150 F
$ 200 U
Standard
Cost
$ 62.50
Labor rate variance
Labor spending variance
Required:
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.
hours
per hour
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 $ 25.00 1. Actual labor hours 2. Actual hourly rate The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls 50 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: $ 150 F $ 200 U Standard Cost $ 62.50 Labor rate variance Labor spending variance Required: 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. hours per hour
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