Quality Motor Company is an auto repair shop that uses standards to control its labor time and labor cost. The star for a motor tune-up is given below: Standard Standard Rate Standard Cost Hours Motor tune-up 2.50 $38.00 $95.00 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the she recalls that 58 tune-ups were completed during the week, and the controller recalls the following variance data rela ups: Labor rate variance $ 450 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 pay rate for tune-ups last week. (Round your answer to 2 decimal places.)

Quality Motor Company is an auto repair shop that uses standards to control its labor time and labor cost. The star for a motor tune-up is given below: Standard Standard Rate Standard Cost Hours Motor tune-up 2.50 $38.00 $95.00 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the she recalls that 58 tune-ups were completed during the week, and the controller recalls the following variance data rela ups: Labor rate variance $ 450 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 pay rate for tune-ups last week. (Round your answer to 2 decimal places.)

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Description: Quality Motor Company is an auto repair shop that uses standards to control its labor time and labor cost. The standard labor costfor a motor tune-up is given below:StandardStandard Rate Standard CostHoursMotor tune-up2.50$38.00$95.00BookThe record

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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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Question

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
Standard Rate Standard Cost
Hours
Motor tune-up
2.50
$38.00
$95.00
Book
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-
Hint
ups:
Print
erences
$ 450 F
$ 500 U
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. (Round your answer to 2 decimal places.)
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5 of 8
Next
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4/8/2021
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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:
$ 450 F
$ 500 U
Labor rate variance
Labor spending variance
Вook
Hint
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.)
Print
erences
1. Actual labor hours
hours
2. Actual hourly rate
per hour
< Prev
5 of 8
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2:34 F
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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 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 Standard Rate Standard Cost $72.50 $29.00 1. Actual labor hours 2. Actual hourly rate $ 120 F $ 170 U 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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