Question: Ackermans Garage uses standards to plan and control labor time and expense. The standard time for an engine tune-up is 3.75 hours, and the standard
Ackermans Garage uses standards to plan and control labor time and expense. The standard time for an engine tune-up is 3.75 hours, and the standard labor rate is $18 per hour. Last week, 23 tune-ups were completed. The labor efficiency variance was 13 hours unfavorable, and the labor rate variance totaled $85 favorable.
Required:
Calculate the actual direct labor hourly rate paid for tune-up work last week. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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