A company budgeted making 550 finished goods at the beginning of the year. The standard amount of materials estimated was $30 per pound and 3 pounds of material per finished good. The standard amount of direct labor was set at 15 minutes per finished good and they budgeted to pay their employees $20 per hour. At year-end they compared the budgeted amounts to what they actually incurred making 600 finished goods: ACTUAL ACTUAL $ $29.50 per Pound $19.50 per hour Materials 1,800 Total Pounds 160 Total Hours The company's direct labor rate variance is: Direct Labor $900 favorable O $80 favorable O $120 unfavorable O No variance exists

A company budgeted making 550 finished goods at the beginning of the year. The standard amount of materials estimated was $30 per pound and 3 pounds of material per finished good. The standard amount of direct labor was set at 15 minutes per finished good and they budgeted to pay their employees $20 per hour. At year-end they compared the budgeted amounts to what they actually incurred making 600 finished goods: The company's direct labor rate variance is: $900 favorable $80 favorable $120 untavorable No variance exists