Determine the number of actual labour-hours spent

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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:

Job                  Standard Hours              Standard Rate               Standard Cost

Motor tune-up    4                                 $13                          $52

The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 40 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:

Labour rate variance $112 F

Total labour variance 118 U

Required:

Question 1: Determine the number of actual labour-hours spent on tune-ups during the week. (Round your answer to the nearest whole number.)

Question 2: Determine the actual hourly rate of pay for tune-ups last week. (Hint: A useful way to proceed would be to work from known to unknown data either by using the variance formulas or by using the columnar format shown in Exhibit 11-5.) (

Reference no: EM132492591

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