The auto repair shop of empire motor sales uses standards to control labor time and labor cost in the shop. The standard time for a motor tune-up is…

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The auto repair shop of empire motor sales uses standards to control labor time and labor cost in the shop. The standard time for a motor tune-up is 2.5 hours. The record showing time spent in th shop last week on tune-ups has been misplaced; however, the shop supervisor recalls that 50 tune-ups were completed during the week and the controller recalls that the labor rate variance on tune-ups was $87, favorable. The shop has a set standard labor rate of $9 per hour for tune-up work. The total labor variance for the week on tune up work was $93, unfavorable.

  1. The actual hourly rate of pay for tune-up work last week was:
  2. $8.40 per hour
  3. $9.00 per hour
  4. $9.60 per hour
  5. Cannont be computer without further information
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