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Homework answers / question archive / The auto repair shop of Quality Motor Company uses standards to control the labour time and labour cost in the shop

The auto repair shop of Quality Motor Company uses standards to control the labour time and labour cost in the shop

Accounting

The auto repair shop of Quality Motor Company uses standards to control the labour time and labour cost in the shop. The standard labour cost for a motor tune-up follows: Standard Hours Standard Rate Standard Cost Job Motor tune-up 3 $9 $27 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: Labour rate variance $90 F Total labour variance 96 U Required: 1. Determine the number of actual labour-hours spent on tune-ups during the week. 2. Determine the actual hourly rate of pay for tune-ups last week.

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