Computing the standard labor price


Response to the following problem:

Kerensky Car Wash, Inc., expected to wash 1,000 cars during the month of August. Washing each car was expected to require 0.2 hours of labor. The company actually used 210 hours of labor to wash 940 cars. The labor usage variance was $352 unfavorable.

Required:

a. Determine the standard labor price.

b. If the actual labor rate is $14, indicate whether the labor price variance would be favorable (F) or unfavorable (U).

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Cost Accounting: Computing the standard labor price
Reference No:- TGS02074204

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