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

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Reference no: EM131208012

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 2.5 hours. The record showing time spent in the shop last week on tune-ups has been misplaced; however, the shop supervisor recalls that 50 tune-ups were completed during the week and the controller recalls that the labor rate variance on tune-ups was $87, favorable. The shop has a set standard labor rate of $9 per hour for tune-up work. The total labor variance for the week on tune-up work was $93, unfavorable.

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

a. cannot be computed with the given information

b. $9.00 per hour

c. $9.60 per hour

d. $8.40 per hour

Reference no: EM131208012

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