7-The following cost information is for Harry Company.

Actual results

Total cost of purchasing material $58,000

Number of labor hours worked 1,000 hours

Number of material pounds used in production 5,850 pounds

Total labor cost $48,000

Number of units produced 300 units

Number of material pounds purchased 6,250 pounds

Harry Company has established the following standards.

Price per pound of materials $10.00 per pound

Number of pounds of material to produce one unit 20 pounds

Standard labor rate $50.00 per hour

Number of labor hours to produce one unit 3 hours

Compute Harrys Labor Rate Variance.

$5,000 Favorable

$3,000 Unfavorable

$5,000 Unfavorable

$2,000 Favorable

$3,000 Favorable

$2,000 Unfavorable