The auto repair shop of Quality Motor Company uses standards to control the labor time and labor

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 Standard Standard Job Hours Rate Cost Motor tune-up $9.00 $22.50 2.5

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:

            

Required:

I.          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.

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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 978-0697789938

13th Edition

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

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