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Mike's Service Station Performs Oil Changes for Cars

Question 76

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Mike's Service Station performs oil changes for cars. Each oil change has a standard time of 0.5 direct labor hours. The standard direct labor hour rate is $15.00 per hour. Data relating to oil changes for the month of September follow: Mike's Service Station performs oil changes for cars. Each oil change has a standard time of 0.5 direct labor hours. The standard direct labor hour rate is $15.00 per hour. Data relating to oil changes for the month of September follow:   What is the labor rate variance for September? A) $1,500 favorable B) $750 favorable C) $1,500 unfavorable D) $750 unfavorable What is the labor rate variance for September?


A) $1,500 favorable
B) $750 favorable
C) $1,500 unfavorable
D) $750 unfavorable

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