The auto repair shop of Quality Motor Company uses standards to control the labor time and labor
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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 Hours | Standard Rate | Standard Cost | |
---|---|---|---|
Motor tune-up | 2.50 | $ 36.00 | $ 90.00 |
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 | $ 400 | F |
---|---|---|
Labor spending variance | $ 500 | 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.)
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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