The auto repair shop of Empire Motor Sales uses standards to control labor time
ID: 2380329 • Letter: T
Question
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 3.5 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 $80, favorable. The shop has a set standard labor rate of $7 per hour for tune-up work. The total labor variance for the week on tune-up work was $95, unfavorable.
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 3.5 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 $80, favorable. The shop has a set standard labor rate of $7 per hour for tune-up work. The total labor variance for the week on tune-up work was $95, unfavorable.
Explanation / Answer
$6.60 per hour The actual hourly rate of pay for tune-up work last week was:Related Questions
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