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Dudley's Automotive Installs Mufflers in Cars What Is the Labor Price (Rate)variance for July?
A)$2,730 Favorable

Question 159

Multiple Choice

Dudley's Automotive installs mufflers in cars.Each muffler has a standard for installation time of 0.25 direct labor hours.The standard direct labor hour rate is $12.50 per hour.Data relating to muffler installations for the month of July follow:  Actual number of mufflers installed 2,100 Actual direct labor hours worked 500 Actual total direct labor cost $5,600\begin{array} { | l | r | } \hline \text { Actual number of mufflers installed } & 2,100 \\\hline \text { Actual direct labor hours worked } & 500 \\\hline \text { Actual total direct labor cost } & \$ 5,600 \\\hline\end{array} What is the labor price (rate) variance for July?


A) $2,730 favorable
B) $ 650 favorable
C) $2,730 unfavorable
D) $ 650 unfavorable

Correct Answer:

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