Answer Corporation uses standard cost system. The standard costs and actual costs for direct materials, direct labor, and factory overhead for the manufacture of 2,500 units of product are as follows:

Standard Costs
Direct materials	2,500 kilograms @ $8
Direct labor	7,500 hours @ $12
Actual Costs
Direct materials	2,600 kilograms @ $8.75
Direct labor	7,400 hours @ $11.40
Factory overhead (100% capacity - 10,000 hrs.):

Variable cost @ $2 per hour Total variable cost, $18,000 Fixed cost @ $0.80 per hour Total fixed cost, $8,000 Refer to the information provided for Answer Corporation. The amount of the direct labor time variance is:

$1,200 favorable.

$1,140 unfavorable.

$1,200 unfavorable.

$1,140 favorable.