The auto repair shop uses standards to control labor time

Reference no: EM13605942

The auto repair shop uses standards to control labor time and labor cost in the shop. The standard time for a motor tune-up is 4.1 hours. The record showing time spent in the shop last week on tune-ups has been misplaced; however, the shop supervisor recalls that 70 tune-ups were completed during the week and the controller recalls that the labor rate variance on tune-ups was $89, favorable. The shop has a set standard labor rate of $8 per hour for tune-up work. The total labor variance for the week on tune-up work was $95, unfavorable.

The actual hourly rate of pay for tune-up work last week was which one?$7.70 per hour $8.00 per hour $8.30 per hour or cannot be computed with the given information.

Reference no: EM13605942

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