Acme Company produces a single product and uses a standard cost

accounting system. For the current month, budgeted production is

$3,500$ units of finished goods and budgeted direct labor costs are

$$117,600.$ Actual production is $3,350$ units, actual direct labor costs

are $$111,850,$ and actual direct labor hours worked are $6,450$ hours.

The direct labor standard is $2\mathrm{.}0$ hours per unit of finished goods. What

is the direct labor rate variance?

$$1,130$ Favorable

$$3,490$ Favorable

$$2,950$ Favorable

$$5,750$ Favorable