Calculating and interpreting labor price and quantity variances (LO2, LO3). QuickyLube specializes in the routine maintenance of automobiles, including changing a car’s oil and other vital fluids as...

Calculating and interpreting labor price and quantity variances (LO2, LO3). 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 are QuickyLube’s labor price and quantity variances for the most recent week?

b. What factor(s) could explain QuickyLube’s labor variances?