Question: Ackerman's garage uses standards to plan and control labor time and expenses. The standard time for an engine tune-up is 3.5 hours, and the standard
Ackerman's garage uses standards to plan and control labor time and expenses. The standard time for an engine tune-up is 3.5 hours, and the standard labor rate is $19 per hour. last week, 24 tune-ups were completed. The laborefficiencyvariance was 13 hours unfavorable, and the labor rate variance totaled $85 favorable.
a- Calculate the actual direct labor hourly rate paid for tune-up work last week.
b- Calculate the dollar amount of the labor efficiency variance.
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