Hassock Corp. produces woven wall hangings. It takes 4 hours of direct labor to produce a single wall hanging. Hassock's standard labor cost is $16 per hour. During August, Hassock produced 15,000 units and used 60,170 hours of direct labor at a total cost of $960,720. What is Hassock's labor rate variance for August?

Multiple Choice

• $1,994 favorable.
• $2,000 unfavorable.
• $2,000 favorable.
• $3,994 favorable.
• $1,994 unfavorable.