Actual hourly rate of pay for tune-up work

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Reference no: EM131208011

The auto repair shop of Empire Motor Sales uses standards to control labor time and labor cost in the shop. The standard time for a motor tune-up is 4 hours. The record showing time spent in the shop last week on tune-ups has been misplaced; however, the shop supervisor recalls that 60 tune-ups were completed during the week and the controller recalls that the labor rate variance on tune-ups was $88, favorable. The shop has a set standard labor rate of $7 per hour for tune-up work. The total labor variance for the week on tune-up work was $94, unfavorable.

The actual hourly rate of pay for tune-up work last week was:

A. cannot be computed with the given information

B. $7.00 per hour

C. $7.30 per hour

D. $6.70 per hour

Reference no: EM131208011

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