Practice Question 25 Incorrect answer. The labor price variance is calculated by taking the actual hours times the actual rate minus the actual hours times the standard rate. Bateh Company produces hot sauce. The following information is provided concerning its standard cost system for the year: Standard Data Actual Data Material 1/8 lb. @ $7.50 per lb. Produced 4,400 Labor 24 mins. @ $12 per hr. Materials cost $7.40 per pound Budgeted fixed overhead $28,350 Materials used 556 pounds Budgeted variable overhead $4.50 per unit Labor worked 1,610 hours totaling $19,481 Budgeted production 4,500 Actual overhead Fixed $20,000; Variable $28,400 How much is the labor price variance?

A). $1,800F.

B). $176U.

C). $161U.

D). $1,639F.

I know D) is not correct. Kindly help show the steps. Thanks!