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Headphones Company makes a product that is expected to require 5 hours of labor per unit of product. The standard cost of labor is $10.00

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Headphones Company makes a product that is expected to require 5 hours of labor per unit of product. The standard cost of labor is $10.00 per hour. The company expected to produce 800 units of the product during the period. The company actually used 5.4 hours of labor per unit of product. The actual cost of labor was $9.50 per hour. The company made 700 units of product during the period. Based on this information alone, the labor usage variance is: $2,800 Favorable $1,890 Favorable $1,890 Unfavorable $2,800 Unfavorable $0

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