Ally Mfg. uses a standard cost system and its July production of 1,770 units involved actual direct labor costs of $241,500 for 5,470 hours worked. The budget for July called for production of 2,000 units with 5,900 direct labor hours at $39.00 per hour.
Ally's flexible budget variance for July is:
A) $37,862 unfavorable
B) $29,170 unfavorable
C) $10,692 unfavorable
D) $9,692 unfavorable
E) $28,170 unfavorable