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: $$\begin{array} { | l | r | }
\hline \text { Actual number of mufflers installed } & 2,100 \
\hline \text { Actual direct labor hours worked } & 500 \
\hline \text { Actual total direct labor cost } & \$ 5,600 \
\hline
\end{array}$$ What is the labor price (rate)variance for July?

Question

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: $$\begin{array} { | l | r | } 
\hline \text { Actual number of mufflers installed } & 2,100 \
\hline \text { Actual direct labor hours worked } & 500 \
\hline \text { Actual total direct labor cost } & \$ 5,600 \
\hline
\end{array}$$ What is the labor price (rate)variance for July?

Quizplus · Accepted Answer

The Answer of  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: $$\begin{array} { | l | r | } 
\hline \text { Actual number of mufflers installed } & 2,100 \
\hline \text { Actual direct labor hours worked } & 500 \
\hline \text { Actual total direct labor cost } & \$ 5,600 \
\hline
\end{array}$$ What is the labor price (rate)variance for July?

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

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