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: 2.5
- Standard rate: $9.00
- Standard cost: $22.50
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 data relating to tune-ups:
- Labor rate variance $87 F
- Total labor variance $93 U
Requirement 1: Determine the number of actual labor-hours spent on tune-ups during the week.