CH 10 HW 6 Help Save & Ch 4 The auto repair shop of Quality Motor Company uses s

Question

CH 10 HW 6 Help Save & Ch 4 The auto repair shop of Quality Motor Company uses sta labor cost for a motor tune-up is given below points 2.60 $4.00 $10.40 has been misplaced. However, the shop supervisor recalls that 180 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Print 270 U s 198 u 1. Determine the number of actual labor-hours spent on tune-ups during the week. 2. Determine the actual hourly rate of pay for tune-ups last week. (Round your answer to 2 decimal places.) 4 of

Explanation / Answer

Solution) 180 tune-ups were completed during the week and standard hour to complete one tune-up is 2.6 hours

so total hour took = 180* 2.6 hours = 468 standard hours. as no other information is given, we assume that total actual hours taken will be equal to 468 hours (answer)

labor rate variance = (actual hours * actual rate per hour) - (actual hours * standard rate)

$270 = ( 468 * actual rate per hour) - ( 468*$4 per hour)

$270 = (468 * actual rate per hour) - $1872

solving equation

we get, the actual rate per hour = $4.58 ( answer)

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