14-3

Moms Apple Pie Company uses a standard cost system. The standard direct labor time for each pie is 20 minutes. During the most recent month, the company produced and sold 4,800 pies. The standard direct labor rate is $19.00 per hour; the actual labor rate per hour for the month was $18.80. The company used a total of 1,620 labor hours.

Brief Exercise 14-22 [LO 14-3]

What was the direct labor rate variance for the month? Was this variance favorable (F) or unfavorable (U)? (Do not round intermediate calculations.)