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
$965F
Requirement 1:
Determine the number of actual labor hours spent on tune ups during the week.
Requirement 2:
Determine the actual hourly rate of pay for tune ups last week. (Round your answer to 1 decimal place. Omit the “$” sign in your response.)