If operating standards indicate that the labor cost per cover should be $2.00, and labor costs for the period were $1,000 with 450 covers served, what is the actual variance in labor cost per cover?

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Quizplus · Accepted Answer

The actual labor cost per cover is $1,000 / 450 = $2.22. The standard cost per cover is $2.00. The variance per cover is $2.22 - $2.00 = $0.22. For 450 covers, the total variance is 450 * $0.22 = $99, which rounds to $100.

If Operating Standards Indicate That the Labor Cost Per Cover