Reference no: EM132595497

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             Standard Rate             Standard Cost

Motor tune-up    2.5                               $25.00                          $62.50

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:

Labor rate variance  $150F

Labor spending variance $200U

Required:

Question 1. Determine the number of actual labor-hours spent on tune-ups during the week.

Question 2. Determine the actual hourly rate of pay for tune-ups last week. (Round your answer to 2 decimal places.)