Exercise 9-11 (Algo) Working Backwards from Labor Variances [LO9-5] The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard labor cost for a motor tune-up is given below: Motor tune-up Standard Rate Standard Cost Standard Hours 2.50 $ 34.00 $ 85.00 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 54 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Labor rate variance $ 350 F Labor spending variance $ 500 U Required: 1. Determine the number of actual labor-hours spent on tune-ups during the week. 2. Determine the actual hourly rate of pay for tune-ups last week. (Round your answer to 2 decimal places.) 1. Actual labor hours 2. Actual hourly rate hours per hour
Exercise 9-11 (Algo) Working Backwards from Labor Variances [LO9-5] The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard labor cost for a motor tune-up is given below: Motor tune-up Standard Rate Standard Cost Standard Hours 2.50 $ 34.00 $ 85.00 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 54 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Labor rate variance $ 350 F Labor spending variance $ 500 U Required: 1. Determine the number of actual labor-hours spent on tune-ups during the week. 2. Determine the actual hourly rate of pay for tune-ups last week. (Round your answer to 2 decimal places.) 1. Actual labor hours 2. Actual hourly rate 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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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![Exercise 9-11 (Algo) Working Backwards from Labor Variances [LO9-5]
The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard
labor cost for a motor tune-up is given below:
Motor tune-up
Standard
Rate
Standard
Cost
Standard
Hours
2.50
$ 34.00
$ 85.00
The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls
that 54 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
$ 350 F
$ 500 U
Required:
1. Determine the number of actual labor-hours spent on tune-ups during the week.
2. Determine the actual hourly rate of pay for tune-ups last week. (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%2F0abf3188-403e-415c-b28a-ffc30a0bceb8%2Fc94de357-c711-4f3f-b006-031315292f81%2Ftytdn5m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 9-11 (Algo) Working Backwards from Labor Variances [LO9-5]
The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard
labor cost for a motor tune-up is given below:
Motor tune-up
Standard
Rate
Standard
Cost
Standard
Hours
2.50
$ 34.00
$ 85.00
The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls
that 54 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
$ 350 F
$ 500 U
Required:
1. Determine the number of actual labor-hours spent on tune-ups during the week.
2. Determine the actual hourly rate of pay for tune-ups last week. (Round your answer to 2 decimal places.)
1. Actual labor hours
2. Actual hourly rate
hours
per hour
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