Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Hassocks standard labor cost is $17 per hour. During August, Hassock produced 14,000 units and used 28,160 hours of direct labor at a total cost of $476,020. What is Hassocks labor rate variance for August?

Multiple Choice

• $2,685 favorable.

• $2,700 unfavorable.

• $2,700 favorable.

• $5,385 favorable.

• $2,685 unfavorable.