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Ogre Corporation produces a product requiring 3.5 direct labor hours at $21.00 per hour. During January, 2,000 products are produced using 7,750 direct labor hours.

Ogre Corporation produces a product requiring 3.5 direct labor hours at $21.00 per hour. During January, 2,000 products are produced using 7,750 direct labor hours. Ogres actual payroll during January was $108,280. What is the labor quantity variance?

1. $15,750 Unfavorable

2.$38,720 Favorable

3.$15,750 Favorable

4.$38,720 Unfavorable

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