Dreidell Corporation expected to use 4.5 direct labor hours to produce one unit of their product, at a rate of $14.5/DLH. Actual results for last year indicate that they sold 5,000 units, where their direct labor workforce actually worked 6,000 hours at a rate of $14.25/DLH.

What is the Direct Labor Rate Variance?

• $1,500 favorable
• $1,250 unfavorable
• $1,250 favorable
• $1,500 unfavorable