Has E t.mbeducation.com/flowrconnecthnl Exercise 10-5 Working Backwards from Lab

Question

Has E t.mbeducation.com/flowrconnecthnl Exercise 10-5 Working Backwards from Labor Variances [LO10-2 e auto repaie shop of Qusity 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 StandardStanda Cost Hours 2.5 Rate Motor tune up 5.00$62.5 The recard showing the time spent in the shop last week on motor tune-ups has been mis recals that 50 tune-ups weve completed during t e week and the controler recals the folowing variance data relating to tune-ups placed However, the shop superviso s 15e F Labor rate variance Labor spending variance $20eu Required: 1 Determine 2 Determune the actual hourly rate of pay for tune ups last week (Round your answer to 2 d the number of actual fabor hours spent on tune-ups during the week ecimal pleces.) hourly rale per hour Prev 1of3? Next >

Explanation / Answer

Labour efficiency variance = 200U+150 F = 350 U

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

                            -350    = (50*2.5-X)*25

                              -350    = 3125-25X

                           25X        = 3475

X(actual hour) = 139 hour

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

                    150          = (25*139-139X)

                    150            = 3475-139X

                  139X             = 3325

X(actual rate) = 23.92 per hour

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.