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Beta Company manufactures tables. It uses two types of labor: assembly labor and laminating labor. Beta has developed the following standard mix for direct labor

Beta Company manufactures tables. It uses two types of labor: assembly labor and laminating labor. Beta has developed the following standard mix for direct labor for manufacturing one table.

Direct Labor Type Mix Mix Proportion Standard Price Standard Cost
Assembly 2 hours 0.50 $20 $40
Laminating 2 hours 0.50 $15 $30
4 hours $70

Beta Company required 500 actual hours to produce 120 tables, of which 300 hours were taken for assembly work and 200 hours for laminating. Based on the given information, calculate the direct labor mix variance.

a.$250 unfavorable (U)

b.$525 unfavorable (U)

c.$525 favorable (F)

d.$250 favorable (F)

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