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Benson Car Wash, Inc. expected to wash 1,000 cars during the month of August. Washing each car was expected to require 0.2 hour of labor.
Benson Car Wash, Inc. expected to wash 1,000 cars during the month of August. Washing each car was expected to require 0.2 hour of labor. The company actually used 211 hours of labor to wash 930 cars. The labor usage variance was $375 unfavorable. Required a. Determine the standard labor price. b. If the actual labor rate is $13, indicate whether the labor price variance would be favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) a. Standard labor price b. Total labor price variance
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