Quality Motor Company established the standard labor cost for a motor tune-up shown below: Standard Hours Standard Rate Standard Cost Motor tune-up 2.5 $ 25.00 $ 62.50 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: Labor rate variance $ 150 F Labor spending variance $ 200 U Required: Determine the number of actual labor-hours spent on tune-ups during the week. Determine the actual hourly pay rate for tune-ups last week
Quality Motor Company established the standard labor cost for a motor tune-up shown below: Standard Hours Standard Rate Standard Cost Motor tune-up 2.5 $ 25.00 $ 62.50 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: Labor rate variance $ 150 F Labor spending variance $ 200 U Required: Determine the number of actual labor-hours spent on tune-ups during the week. Determine the actual hourly pay rate for tune-ups last week
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Quality Motor Company established the
| Standard Hours | Standard Rate | Standard Cost | |
|---|---|---|---|
| Motor tune-up | 2.5 | $ 25.00 | $ 62.50 |
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:
| Labor rate variance | $ 150 | F |
|---|---|---|
| Labor spending variance | $ 200 | U |
Required:
- Determine the number of actual labor-hours spent on tune-ups during the week.
- Determine the actual hourly pay rate for tune-ups last week
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