Que value 20.00 points The auto repair shop of Quality Motor Company uses standa

Question

Que value 20.00 points The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard labor cost for a motor tune-up is given below JobStandard Hours Standard Rate Standard Cost Motor tune-up 220 $5.50 $12 10 The record showing the time spent in the shop last week on motor tune-ups has been misplaced However, the shop supervisor recalls that 130 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups Labor rate variance Labor spending variance S 265 F $1,077U Required: 1. Determine the riumber of actual labor-hours spent on tune-ups during the week hours 2 Determine the actual hourly rate of pay for tune-ups last week. (Round your answer to 2 decimal places.) per hour HintsReferences eBook& Resources Type here to search

Explanation / Answer

Labour efficiency variance = 265+1077 = 1342 U

Labour efficiency variance = (Standard hour-actual hour)Standard rate

-1342 = (130*2.2-X)*5.5

-1342 = 1573-5.5X

5.5X = 2915

X(actual hour) = 530 Hour

Labour rate variance = (Standard rate-actual rate) actual hours

265 = (5.5*530-530X)

265 = 2915-530X

530X = 2650

X(actual rate) = 5 per hour

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