Item 2

Item 2 Pella Car Wash, Inc. expected to wash 2,000 cars during the month of August. Washing each car was expected to require 0.2 hour of labor. The company actually used 420 hours of labor to wash 1,880 cars. The labor usage variance was $880 unfavorable.

Required

1. Determine the standard labor price.
2. If the actual labor rate is $17.50, indicate whether the labor price variance would be favorable (F) orunfavorable (U).