The standard direct labor cost for room cleaning at Texas Hotels is $2.50 per room ($10 per hour in wages divided by 4 rooms cleaned per hour). Actual labor costs were $11,330 for the month. During the period there were 1,100 labor hours worked; 3,920 rooms were cleaned during the month.
Required:
(Be sure to indicate whether the variance is favorable or unfavorable.)
a. Compute the labor price variance for the period.
b. Compute the labor efficiency variance for the period.

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The Answer of The standard direct labor cost for room cleaning at Texas Hotels is $2.50 per room ($10 per hour in wages divided by 4 rooms cleaned per hour). Actual labor costs were $11,330 for the month. During the period there were 1,100 labor hours worked; 3,920 rooms were cleaned during the month.
Required:
(Be sure to indicate whether the variance is favorable or unfavorable.)
a. Compute the labor price variance for the period.
b. Compute the labor efficiency variance for the period.

The Standard Direct Labor Cost for Room Cleaning at Texas