Quality Motor Company is an auto repair shop that uses standards to control its labor time and labor cost. The standard labor cost for a motor tune up is given below: Standard Hours Standard Rate Standard Cost Motor tune-up 2.50 $ 32.00 $ 80.00 The record showing the time spent in the shop last week on motor tune - ups has been misplaced. However, the shop supervisor recalls that 52 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune ups: Labor rate variance $ 300 F Labor spending variance $ 340 U Required: 1. Determine the number of actual labor - hours spent on tune-ups during the week. 2. Determine the actual hourly pay rate for tune-ups last week. (Round your answer to 2 decimal places.)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
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Quality Motor Company is an auto repair shop that uses standards to control its labor time and labor cost. The standard
labor cost for a motor tune-up is given below: Standard Hours Standard Rate Standard Cost Motor tune-up 2.50 $
32.00 $ 80.00 The record showing the time spent in the shop last week on motor tune-ups has been misplaced.
However, the shop supervisor recalls that 52 tune-ups were completed during the week, and the controller recalls the
following variance data relating to tune-ups: Labor rate variance $ 300 F Labor spending variance $ 340 U Required: 1.
Determine the number of actual labor - hours spent on tune-ups during the week. 2. Determine the actual hourly pay
rate for tune-ups last week. (Round your answer to 2 decimal places.)
Transcribed Image Text:Quality Motor Company is an auto repair shop that uses standards to control its labor time and labor cost. The standard labor cost for a motor tune-up is given below: Standard Hours Standard Rate Standard Cost Motor tune-up 2.50 $ 32.00 $ 80.00 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 52 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Labor rate variance $ 300 F Labor spending variance $ 340 U Required: 1. Determine the number of actual labor - hours spent on tune-ups during the week. 2. Determine the actual hourly pay rate for tune-ups last week. (Round your answer to 2 decimal places.)
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