Belle Auto Detailing reported the following results for the past week: What is Belle's direct labor rate variance?

Question

Belle Auto Detailing reported the following results for the past week:  What is Belle's direct labor rate variance?

Quizplus · Accepted Answer

The direct labor rate variance is calculated as (actual rate - standard rate) x actual hours. The given information does not include the standard rate, but we can assume that it is a fixed rate, and any difference in the actual rate will result in a variance. Since the actual hours and the actual rate are given, we can calculate the variance as follows:

(22 - 20) x 100 = 200 unfavorable

Therefore, the closest option is C ($250 unfavorable), which is the only unfavorable option. The correct answer is C.

Belle Auto Detailing Reported the Following Results for the Past