Exercise 10-5 (Algo) Working Backwards from Labor Variances [LO10-2] Quality Motor Company is an auto repair shop that uses standards to control its labor time and labor cost. The standard labor cost for a motor tune-up is given below: Standard Hours 2.50 Labor rate variance Labor spending variance Standard Rate $ 33.00 Motor tune-up The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 58 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: 1. Actual labor hours 2. Actual hourly rate $ 80 F $ 118 U Standard Cost $ 82.50 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. (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 is an auto repair shop that uses standards to control its labor time and labor cost. The standard labor cost for.
motor tune-up is given below:
Standard
Hours
2.50
Labor rate variance.
Labor spending variance
Standard
Rate
$ 33.00
Motor tune-up
The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls
that 58 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:
1. Actual labor hours
2. Actual hourly rate
$80 F
$ 118 U
Standard
Cost
$ 82.50
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. (Round your answer to 2 decimal places.)
hours
per hour
Transcribed Image Text:es Exercise 10-5 (Algo) Working Backwards from Labor Variances [LO10-2] Quality Motor Company is an auto repair shop that uses standards to control its labor time and labor cost. The standard labor cost for. motor tune-up is given below: Standard Hours 2.50 Labor rate variance. Labor spending variance Standard Rate $ 33.00 Motor tune-up The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 58 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: 1. Actual labor hours 2. Actual hourly rate $80 F $ 118 U Standard Cost $ 82.50 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. (Round your answer to 2 decimal places.) hours per hour
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