9)

Madden Corporation manufactures t-shirts, which is its only product. The standards for t-shirts are as follows:

Standard direct labor cost per hour: $17

Standard direct labor hours per t-shirt: .6

During the month of January, the company produced 1,250 t-shirts. Related production data for the month follows:

Actual direct labor hours: 770

Actual direct labor cost incurred: $13,000

What is the direct labor rate variance for the month?

A) $90 favorable

B) $90 unfavorable

C) $340 unfavorable

D) $340 favorable