QuickyLube specializes in the routine maintenance of automobiles, including changing a cars oil and other vital fluids

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QuickyLube specializes in the routine maintenance of automobiles, including changing a car’s oil and other vital fluids as well as checking tire pressure and lights, replacing wiper blades, and the functioning of all filters. Management of QuickyLube budgets to service 275 automobiles a week and has adopted the following labor standard for their technicians: ½ hour per car serviced at a wage rate of $12.50 per hour.
During the past week, QuickyLube actually serviced 210 automobiles. In addition, QuickyLube paid their technicians $1,470 for 140 hours worked.

Required:
a. What were QuickyLube’s labor price and quantity variances for the most recent week?
b. What factor(s) could explain QuickyLube’s labor variances?

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Managerial accounting

ISBN: 978-0471467854

1st edition

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

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