Chapter 10 Exerches 5 auto repair shop of Quality Motor Company uses standards t

Question

Chapter 10 Exerches 5 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 standard tate Standard The record showing the time spent in the shop last week on moor tune-ups has been misplaced However, the shop supervisor recalls that 200 tune-ups were completed during the week, and the controler recals the following variance data relating to tune ups 1 Determine the number of actual lobor hours spent on tune ups during the week 2 Determine the actual hourly rate of pay for tune-ups last week. (Round your enswer to 2 decimal pleces) O Type here to search BUS 2 34 5 6 78 S DF GHJ

Explanation / Answer

1 Labor efficiency variance=636+354= $990 U Labor efficiency variance=SR*(AH-SH) 990 = 6.6*(AH-200*1.9) 150 = AH-380 AH = 530 hours Actual labor hours = 530 2 Labor rate variance=AH*(SR-AR) 636=530*(6.6-AR) 1.20 = 6.6-AR AR = $5.40 Actual hourly rate = $5.40 per hour

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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