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2.
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
2.10
Standard Rate
$6.50
Standard Cost
$13.65
The record showing the time spent in the shop last week on motor tune-ups has been misplaced.
However, the shop supervisor recalls that 140 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
$ 901 F
$ 633 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.)
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