20

Madrid Co. has a direct labor standard of 4 hours per unit of output. Each employee has a standard wage rate of $12.00 per hour. During February, Madrid Co. paid $99,700 to employees for 9,170 hours worked. 2,400 units were produced during February. What is the direct labor rate variance?

Multiple Choice

• $15,500 favorable

• $10,340 favorable

• $9,492 favorable

• $5,160 favorable