Belle Auto Detailing reported the following results for the past week: What is Belle's direct labor rate variance? (Round intermediary calculations to two decimal places.)
A)$3422 favorable
B)$16,011 favorable
C)$3422 unfavorable
D)$16,011 unfavorable

Question

Belle Auto Detailing reported the following results for the past week:  What is Belle's direct labor rate variance? (Round intermediary calculations to two decimal places.)
A)$3422 favorable 
B)$16,011 favorable 
C)$3422 unfavorable 
D)$16,011 unfavorable

Quizplus · Accepted Answer

The direct labor rate variance formula is (actual labor rate - standard labor rate) x actual hours worked. 
We are not given the actual labor rate or the standard labor rate, so we cannot calculate the variance. Therefore, the answer is C because it is impossible to determine the direct labor rate variance with the given information.

Belle Auto Detailing Reported the Following Results for the Past