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Mike's Service Station performs oil changes for cars. Each oil change has a standard time of 0.5 direct labor hours. The standard direct labor hour
Mike's Service Station performs oil changes for cars. Each oil change has a standard time of 0.5 direct labor hours. The standard direct labor hour rate is $ 12.00 per hour. Data relating to oil changes for the month of September follow:
Actual number of oil changes performed | 1,600 |
Actual direct labor hours worked | 1,200 |
Actual total direct labor cost | $6,000 |
What is the labor rate variance for September?
A. $8,000 unfavorable
B.$8,000 favorable
C. $6,000 favorable
D.$6,000 unfavorable
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