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Question

0 ? M ? M ? Aplia: Studert Question × ?C OM CAplia: StudentQu × ??Connect G he euto repair shop of Q .> C Secure | https://newconnect.mheducation.com/flow/connect.html Chapter 10 HW Set 2 Saved Help Save& Exit Submit my work 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: 33.33 points Standard Hours 2.5 Standard Rate Standard Cost Motor tune-up $25.00 $62.5e eBook The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 50 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Hint Print Labor rate variance Labor spending variance $ 150 F 280 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 Mc Graw Pre of 3Nxt > 9:06 PM 4/3/2018

Explanation / Answer

1. Labor spending variance = (Standard labor hours - Actual labor hours) x Standard labor rate
- $200 = {(50 x 2.5) - Actual labor hours} x $25
Actual labor hours = $8 + $125 = $133 hours

2. Labor rate variance= (Standard labor rate - Actual hourly rate) x Actual labor hours
$150 = ($25 - Actual hourly rate) x $133
Actual hourly rate = $23.87

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