Question: Use the following information for the two part question below The auto repair shop of Empire Motor Sales uses standards to control labor time and
Use the following information for the two part question below
The auto repair shop of Empire Motor Sales uses standards to control labor time and labor cost in the shop. The standard time for a motor tune-up is 2.5 hours. The record showing time spent in the shop last week on tune-ups has been misplaced; however, the shop supervisor recalls that 50 tune-ups were completed during the week and the controller recalls that the labor rate variance on tune-ups was $87, favorable. The shop has a set standard labor rate of $9 per hour for tune-up work. The total labor variance for the week on tune-up work was $93, unfavorable.
Question Part 1
The number of actual hours spent on tune-up work last week was:
105 hours
125 hours
Cannot be computed without further information
145 hours
Question Part 2
The actual hourly rate of pay for tune-up work last week was:
Group of answer choices
$9.00 per hour
$8.40 per hour
Cannot be computed without further information
$9.60 per hour
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