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: Job Standard Hours Standard Rate Standard Cost Motor tune-up 1.90 $6.60 $12.54 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 200 tune-ups were completed during the week and the controller recalls the following variance data relating to tune-ups: Labor rate variance $954 F | Labor spending variance $36 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.)
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: Job Standard Hours Standard Rate Standard Cost Motor tune-up 1.90 $6.60 $12.54 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 200 tune-ups were completed during the week and the controller recalls the following variance data relating to tune-ups: Labor rate variance $954 F | Labor spending variance $36 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.)
Chapter1: Financial Statements And Business Decisions
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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:
Job
Standard Hours Standard Rate Standard Cost
Motor tune-up 1.90
$6.60
$12.54
The record showing the time spent in the shop last week on motor tune-ups has been
misplaced.
However, the shop supervisor recalls that 200 tune-ups were completed during the
week and the controller recalls the following variance data relating to tune-ups:
Labor rate variance $954 F | Labor spending variance $36 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.)
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