I\'m not sure how to do this problem. hapter 10- Homework 6 Help Save & Exlt Sub

Question

I'm not sure how to do this problem.

hapter 10- Homework 6 Help Save & Exlt Submit Check my work 5 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 Standard Rate Standard Cos Motor tune-up 2.5e $4.5e $11.25 oints The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor eBookrecalls that 160 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune ups: Hint Print References Labor rate variance Labor spending variance $ 45 U $ 278 U Required: 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.) 1. Actual labor hours hours 2. Actual hourly rate per hour

Explanation / Answer

Labour rate variance: 45 U Labour spending variance: 270 U Llabour efficiency variance 225 U (I.e. Rate+Efficiency variance= Spending) Std hours per tune-up 2.50 hours Std rate per hour: 4.50 per hour Actual output: 160 tune ups Std hours allowed (160*2.50) 400 hours Labour efficiency: Std rate per hour (Std hours-Actual hours) 225 U = 4.50 ( 400- Actual labouor hours) Actual labouor hours = 450 hours Labour rate variance = Actual hours worked (Std rate-Actual rate) 45 U =    450 hours (4.50 - Actual rate) Actual labour rate: 2.60 per hour

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