newconnect.mheducation.com Illinois State University THE 154 001 SP2018- Introdu
ID: 2553301 • Letter: N
Question
newconnect.mheducation.com Illinois State University THE 154 001 SP2018- Introduction To Black Dra Accounting The auto repair shop of Quality Motor Company uses standards to CH 10 HW 6 Saved Help Save & Exit Submit Check my work 5 Exercise 10-5 Working Backwards from Labor Variances [LO10-2] 6 points 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 2.5 Standard Rate $25.00 Standard Cost $62.50 eBook Motor tune-up Hint Print 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: References $ 150 E 200 U Labor rate variance Labor spending variance Required 1. Determine the number of actual labor-hours spent on tune-ups during the week. 2. Determine the actual hourly rate of pay for tune-ups last week. (Round your answer to 2 decimal places.) 1. Actual labor hours hours 2. Actual hourly rate per hour Mc Graw Hill ?Prev 5 of 8? Next >Explanation / Answer
1. Labor spending variance = (Standard hours - Actual labor hours) x Standard Rate
-$200 = (2.5 - Actual labor hours) x $25
Actual labor hours = 10.5 hours
2. Labor rate variance = (Standard Rate - Actual hourly rate) x Actual labor hours
$150 = ($25 - Actual hourly rate)) x 10.5
Actual hourly rate = $10.71 per hour
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