Crandell Co. forecasts monthly production of 20,000 units at a cost of $20 each. The cost breakdown is as follows: Labor...............2 hours per unit at $4 per hour

Material............3 pounds per unit at $2 per pound

Fixed overhead......$2 per direct labor hour

Variable overhead...$1 per direct labor hour

In September, Crandell produced 18,000 units at a cost of $397,500. If payroll for September amounted to $150,000 at an hourly rate of $5, compute the labor budget variance.

A. $6,000 favorable

B. $6,000 unfavorable

C. $30,000 favorable

D. $24,000 unfavorable

E. none of the above