Dudley's Automotive installs mufflers in cars. Each muffler has a standard for installation time of 0.25 direct labour hours. The standard direct labour hour rate is $12.50 per hour. Data relating to muffler installations for the month of July follow:
What is the labour 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 labour hours. The standard direct labour hour rate is $12.50 per hour. Data relating to muffler installations for the month of July follow: 
 What is the labour price (rate) variance for July?

Quizplus · Accepted Answer

B) Labour price var.= (Actual price per unit - Std price per unit) × actual quantity
$650 F = (($5,600 / 500) - $12.50) × 500

Dudley's Automotive Installs Mufflers in Cars