The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost inthe shop. The standard labor cost for a motor tune-up is given below:Standard Standard StandardJob Hours Rate CostMotor tune-up .................... 2.5 $9.00 $22.50The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However,the shop supervisor recalls that 50 tune-ups were completed during the week, and the controller recalls thefollowing variance data relating to tune-ups:Labor rate variance .............. $87 FTotal labor variance .............. $93 URequired: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.(Hint: A useful way to proceed would be to work from known to unknown data either by using the varianceformulas or by using the columnar format shown in Exhibit 9–6.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

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:
Standard Standard Standard
Job Hours Rate Cost
Motor tune-up .................... 2.5 $9.00 $22.50
The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However,
the shop supervisor recalls that 50 tune-ups were completed during the week, and the controller recalls the
following variance data relating to tune-ups:
Labor rate variance .............. $87 F
Total labor variance .............. $93 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.
(Hint: A useful way to proceed would be to work from known to unknown data either by using the variance
formulas or by using the columnar format shown in Exhibit 9–6.)

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education