5

The following data are given for Harry Company:

Budgeted production	1,028 units
Actual production	955 units
Materials:
Standard price per ounce	$1.789
Standard ounces per completed unit	11
Actual ounces purchased and used in production	10,820
Actual price paid for materials	$22,181
Labor:
Standard hourly labor rate	$14.50 per hour
Standard hours allowed per completed unit	4.0
Actual labor hours worked	4,918
Actual total labor costs	$79,918
Overhead:
Actual and budgeted fixed overhead	$1,033,000
Standard variable overhead rate	$27.00 per standard labor hour
Actual variable overhead costs	$137,704

Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.)

The direct labor rate variance is

a.$8,606.50 favorable

b.$8,606.50 unfavorable

c.$24,528.00 unfavorable

d.$24,528.00 favorable