The repair shop of Quality Motor Company uses standards to control the labour time and labour cost

Question:

The repair shop of Quality Motor Company uses standards to control the labour time and labour cost in the shop. The standard labour cost for a motor tune-up is given below:Job Motor tune-up Standard hours 2.5 Standard rate 9 Standard cost 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:Labour rate variance Total labour variance 87 F 93 U

Required
1. Determine the number of actual labour-hours spent on tune-ups during the week.
2. Determine the actual hourly rate of pay for tune-ups last week.

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Related Book For  book-img-for-question

Management Accounting

ISBN: 9780077185534

6th Edition

Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen

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