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Ally Manufacturing uses a standard cost system and its July production of 3,600 units involved actual direct labor costs of $452,600 for 7,300 hours worked

Ally Manufacturing uses a standard cost system and its July production of 3,600 units involved actual direct labor costs of $452,600 for 7,300 hours worked (AQ). The budget for July called for production of 3,800 units with 7,600 direct labor hours at $58.00 per hour (SP).

Ally's direct labor rate variance for July was:

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