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Crandell Co. forecasts monthly production of 20,000 units at a cost of $20 each. The cost breakdown is as follows: In September, Crandell produced 18,000

Crandell Co. forecasts monthly production of 20,000 units at a cost of $20 each. The cost breakdown is as follows: In September, Crandell produced 18,000 units at a cost of $397,500. If payroll for September amounted to $150,000 at an hourly rate of $5, compute the labor budget variance.

A. $6,000 favorable

B. $24,000 unfavorable

C. $6,000 unfavorable

D. $30,000 favorable

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