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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

  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.

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