The auto 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 follows:

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........................$90 FTotal labour variance.........................96 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.

Transcribed Image Text:

Standard Standard Standard Job Hours Rate Cost Motor tune-up 3 $9 $27