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Rooney Car Wash, Incorporated expected to wash 1,000 cars during the month of August. Washing each car was expected to require 0.2 hour of labor.

Rooney Car Wash, Incorporated 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 219 hours of labor to wash 950 cars. The labor usage variance was $464 unfavorable.

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  1. Determine the standard labor price.
  2. If the actual labor rate is $13, calculate the labor price variance and indicate whether it would be favorable (F) or unfavorable (U).

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