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 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 Labor rate var lance Labor spending variance Standard Rate Standard Cost $ 33.00 $ 82.50 Actual labor hours 2. Actual hourly rate $.00 F $ 118 M 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
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 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 Labor rate var lance Labor spending variance Standard Rate Standard Cost $ 33.00 $ 82.50 Actual labor hours 2. Actual hourly rate $.00 F $ 118 M 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
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 1CMA: MinnOil performs oil changes and other minor maintenance services on cars and trucks. The company...
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5
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:
Motor tune-up
Standard
Hours
2.50
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
Labor rate variance
Labor spending variance
Standard Rate Standard Cost
$ 33.00
$ 82.50
1. Actual labor hours
2. Actual hourly rate
$.00 F
$11
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1eaae1fc-ed33-449b-be0f-97d8c49ba64f%2Fc984c4b9-81cb-43ce-8b30-829b71b536fd%2Fm3z2yxn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:LO
5
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:
Motor tune-up
Standard
Hours
2.50
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
Labor rate variance
Labor spending variance
Standard Rate Standard Cost
$ 33.00
$ 82.50
1. Actual labor hours
2. Actual hourly rate
$.00 F
$11
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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