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QuickyLube specalizes 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 QuickLube budgets to service 275 automobiles a week and has adopted the following labor standard for their technicians: 1/2 hr per car serviced at a wage rate of $12.50 per hr.
During the past week, QuickyLube actually serviced 210 automobiles. In addition, QuickyLube paid the technicians $1,470 for 140 hours worked.
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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