Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Hassocks standard labor cost is $12 per hour. During August, Hassock produced 19,000 units and used 38,140 hours of direct labor at a total cost of $454,680. What is Hassocks labor rate variance for August?

Multiple Choice

$2,989 favorable.

$3,000 unfavorable.

$3,000 favorable.

$5,989 favorable.

$2,989 unfavorable.