5.00 points The auto repair shop of Quality Motor Company uses standards to cont

Question

5.00 points 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 Job Motor tune-up 2.00 $6.40 $12.80 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However the shop supervisor recalls that 210 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Labor rate variance Labor spending variance $846 F $526 F Required: 1. Determine the number of actual labor-hours spent on tune-ups during the week Actual labor hours hours Determine the actual hourly rate of pay for tune-ups last week (Round your answer to 2 decimal places.) 2. per hour hourly rate Type here to search DOLL

Explanation / Answer

Labour spending variance=Labour efficiency variance+ labour rate variance

$ 526 F=labour efficiency variance+$846 F

Labour efficiency variance=320 U

Labour efficiency variance=SP( AH- SH)

320 U=6.40(AH-2×210)

AH=470

Labour rate variance= AH (AR- SR)

846 F =470(AR-$6.40)

AR=$4.60

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