Mike's Service Station performs oil changes for cars. Each oil change has a standard time of 0.4 direct labor hours. The standard direct labor hour rate is $14.00 per hour. Data relating to oil changes for the month of September follow: What is the labor rate variance for September?
A)$5700 favorable
B)$2700 favorable
C)$5700 unfavorable
D)$2700 unfavorable

Question

Mike's Service Station performs oil changes for cars. Each oil change has a standard time of 0.4 direct labor hours. The standard direct labor hour rate is $14.00 per hour. Data relating to oil changes for the month of September follow:  What is the labor rate variance for September?
A)$5700 favorable 
B)$2700 favorable 
C)$5700 unfavorable 
D)$2700 unfavorable

Quizplus · Accepted Answer

The Answer of Mike's Service Station performs oil changes for cars. Each oil change has a standard time of 0.4 direct labor hours. The standard direct labor hour rate is $14.00 per hour. Data relating to oil changes for the month of September follow:  What is the labor rate variance for September?
A)$5700 favorable 
B)$2700 favorable 
C)$5700 unfavorable 
D)$2700 unfavorable

Mike's Service Station Performs Oil Changes for Cars