Hassock Corp. produces woven wall hangings. It takes 3 hours of direct labor to produce a single wall hanging. Hassocks standard labor cost is $13 per hour. During August, Hassock produced 16,000 units and used 48,120 hours of direct labor at a total cost of $623,160. What is Hassocks labor rate variance for August?

Multiple Choice

• $4,794 favorable.

• $2,394 favorable.

• $2,394 unfavorable.

• $2,400 unfavorable.

• $2,400 favorable.