The auto repail shop of Quality Motor Company uses standards to control the labour time and labour cost in the sh labour cost for a motor tune-up follows: Job Motor tune-up Standard Hours Labour rate variance Total labour variance The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the sho that 34 tune-ups were completed during the week, and the controller recalls the following variance data relating to t Actual labour-hours $100 F Actual rate Standard Rate $7 106 U+ Required: 1. Determine the number of actual labour-hours spent on tuneups during the week. (Round your answer to the near number.) Standard Cost $28 hours per hour 2. Determine the actual hourly rate of pay for tuneups last week. (Hint: A useful way to proceed would be to work from known to unknown data either by using the variance formulas a columnar format shown in Exhibit 11-5.) (Round intermediate calculations to the nearest whole number and final ans places.)
The auto repail shop of Quality Motor Company uses standards to control the labour time and labour cost in the sh labour cost for a motor tune-up follows: Job Motor tune-up Standard Hours Labour rate variance Total labour variance The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the sho that 34 tune-ups were completed during the week, and the controller recalls the following variance data relating to t Actual labour-hours $100 F Actual rate Standard Rate $7 106 U+ Required: 1. Determine the number of actual labour-hours spent on tuneups during the week. (Round your answer to the near number.) Standard Cost $28 hours per hour 2. Determine the actual hourly rate of pay for tuneups last week. (Hint: A useful way to proceed would be to work from known to unknown data either by using the variance formulas a columnar format shown in Exhibit 11-5.) (Round intermediate calculations to the nearest whole number and final ans places.)
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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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Transcribed Image Text:Shop Quality tor Company uses standards to control the labour time and labour cost in the shop.
labour cost for a motor tune-up follows:
Job
Motor tune-up
Standard
Hours
4
Labour rate variance
Total labour variance.
The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop s
that 34 tune-ups were completed during the week, and the controller recalls the following variance data relating to tun
Actual labour-hours
$100 F
Actual rate
Standard
Rate
$7
106 U+
Required:
1. Determine the number of actual labour-hours spent on tuneups during the week. (Round your answer to the nearest
number.)
Standard
Cost
$28
hours
per hour
2. Determine the actual hourly rate of pay for tuneups last week.
(Hint: A useful way to proceed would be to work from known to unknown data either by using the variance formulas or b
columnar format shown in Exhibit 11-5.) (Round intermediate calculations to the nearest whole number and final answe
places.)
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