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 $ 31.00 $ 77.50 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 56 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Labor rate variance $ 146 F Labor spending variance $ 102 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
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 $ 31.00 $ 77.50 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 56 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Labor rate variance $ 146 F Labor spending variance $ 102 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
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 17E: Nelson Fabrication Inc. had a remaining credit balance of $20,000 in its under- and overapplied...
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
Transcribed Image Text: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
$ 31.00
$ 77.50
The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls
that 56 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:
Labor rate variance
$ 146 F
Labor spending variance
$ 102 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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