Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:

Direct material of 4.00 yards at $5.80 per yard

Direct labor of 2.50 hours at $16.50 per hour

Overhead applied per sleeping bag at $15.00

In the month of April, the company actually produced 5,200 sleeping bags using 23,300 yards of material at a cost of $5.50 per yard. The labor used was 11,700 hours at an average rate of $16.00 per hour. The actual overhead spending was $96,200. What is the amount of the labor rate variance and is it Favorable (F) or Unfavorable (U)?

Question 7 options:

	$19,050 (U)
	$5,850 (U)
	$5,850 (F)
	$19,050 (F)