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
- Standard Hours: 2.2
- Standard Rate: $5.5
- Standard cost: $12.1
The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 130 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:
Labor rate variance
$47F
Total labor variance
$965F
Requirement 1:
Determine the number of actual labor-hours spent on tune-ups during the week.
Requirement 2:
Determine the actual hourly rate of pay for tune-ups last week