Answer
Labor efficiency variance = labor spending variance - labor rate variance
= -102-146
= 248 unfavorable
Now
Labor efficiency variance = (standard hours - actual hours) × standard rate
-248= ((56×2.5) - actual hours)×31
-248÷31= 140 - actual hours
Actual hours = 140 +8
Actual hours = 148 hours
Now
Labor rate variance = ( standard rate- actual rate)×actual hours
146 = (31 - actual rate)×148
146÷148 = 31- actual rate
Actual rate = 31 - .99
Actual rate = 30.01
Thus the correct answer is
1. Actual labor hours 148 hours
2. Actual hourly rate $ 30.01 per hour
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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 Standard Rate Standard Cost Motor tune-up 2.50 $25.00 $62.50 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...
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 Standard Rate Standard Cost Motor tune-up 2.50 $32.00 $80.00 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 52 tune-ups were completed during the week, and the controller recalls the following variance...
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