Connect C D https:// : Apps P Haiku Drive CH 10 HW G Saved Help Save & Exit Subm

Question

Connect C D https:// : Apps P Haiku Drive CH 10 HW G Saved Help Save & Exit 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 Hours points Standard Rate Standard Cost Motor tune-up $25.00 $62.50 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 $ 200 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 Actual hourly rate per hour Prev 5of8 Next > O Type here to search 3:36 PM 3/11/2018

Explanation / Answer

Labour efficiency variance = (200 U-150F) = 350 U

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

-350 = (50*2.5-X)25

-350 = 3125-25X

25X = 3475

X(actual labour hour) = 139 Hour

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

150 = (25*139-139X)

139X = 3325

X(actual hourly rate) = 23.92

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