University Of Southern California Operations And Supply Chain Management Assignment Help - Standard Costs
Question - 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:
Job: Motor tune-up
Standard Hours: 2.2
Standard Rate: $5.5
Standard cost: $12.1
The record showing the time spent in the shop last week on motor tune-ups has been misplaced.
However, the shop supervisor recalls that 130 tune-ups were completed during the week, and the
controller recalls the following variance data relating to tune-ups:
Labor rate variance
$47F
Total labor variance
$965F
Requirement 1:
Determine the number of actual labor-hours spent on tune-ups during the week.
Requirement 2:
Determine the actual hourly rate of
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