Vernon Car Wash, Incorporated expected to wash 1,000 cars during the month of August. Washing each...
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Vernon Car Wash, Incorporated expected to wash 1,000 cars during the month of August. Washing each car was expected to require 0.3 hour of labor. The company actually used 319 hours of labor to wash 980 cars. The labor usage variance was $375 unfavorable. Required a. Determine the standard labor price. b. If the actual labor rate is $12, calculate the labor price variance and indicate whether it would be favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). a. Standard labor price b. Total labor price variance Vernon Car Wash, Incorporated expected to wash 1,000 cars during the month of August. Washing each car was expected to require 0.3 hour of labor. The company actually used 319 hours of labor to wash 980 cars. The labor usage variance was $375 unfavorable. Required a. Determine the standard labor price. b. If the actual labor rate is $12, calculate the labor price variance and indicate whether it would be favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). a. Standard labor price b. Total labor price variance
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a To determine the standard labor price we first need to find the standard labor hours expected for ... View the full answer
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