1. Pisces Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has established the following standard for the direct labor costs of one unit of product:

   	Standard Quantity	Standard Price	Standard Cost
   Direct labor	1.3 hours	$22.00/hour	$28.60

   The total factory wages for June were $800,000, 90 percent of which were for direct labor. The company manufactured 25,000 units of product during June using 32,000 direct labor hours. The direct labor rate variance for June is:

   		$16,000 favorable.
   		$16,000 unfavorable.
   		$96,000 favorable.
   		$96,000 unfavorable.