The Smart Garage Company uses standards to control the labour time and labour cost in the shop. The standard labour cost for a motor tune-up follows: Job Motor tune-up Standard Hours 3 Standard Rate Standard Cost $20 $60 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 47 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Labour rate variance Total labour variance $126 F 132 U Required: 1. Determine the number of actual labour-hours spent on tune-ups during the week. (Round your answer to the nearest whole number.) Actual labour-hours _hours 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 11-5.) (Round intermediate calculations to the nearest whole number and final answer to 2 decimal places.) Actual rate per hour
The Smart Garage Company uses standards to control the labour time and labour cost in the shop. The standard labour cost for a motor tune-up follows: Job Motor tune-up Standard Hours 3 Standard Rate Standard Cost $20 $60 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 47 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Labour rate variance Total labour variance $126 F 132 U Required: 1. Determine the number of actual labour-hours spent on tune-ups during the week. (Round your answer to the nearest whole number.) Actual labour-hours _hours 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 11-5.) (Round intermediate calculations to the nearest whole number and final answer to 2 decimal places.) Actual rate per hour
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Hanshaben
Transcribed Image Text:The Smart Garage Company uses standards to control the labour time and labour cost in the shop. The standard labour cost for a
motor tune-up follows:
Job
Motor tune-up
Standard
Hours
3
Standard
Rate
Standard
Cost
$20
$60
The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls
that 47 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:
Labour rate variance
Total labour variance
$126 F
132 U
Required:
1. Determine the number of actual labour-hours spent on tune-ups during the week. (Round your answer to the nearest whole
number.)
Actual labour-hours
_hours
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 11-5.) (Round intermediate calculations to the nearest whole number and final answer to 2 decimal
places.)
Actual rate
per hour
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