1. Use the following data to find the direct labor rate variance if the company produced 7,000 units of product during the period.

Standard:
Direct labor (3.2 hrs. per unit @ $7/hr.)	$22.40	per unit
Actual cost incurred:
Direct labor (24,500 hrs. @ $7.50/hr.)	$183,750

$12,250 unfavorable.

$14,700 unfavorable.

$14,700 favorable.

$12,250 favorable.

$26,950 favorable.