Question $17$

Acme Company produces a single product and uses a standard cost

accounting system. For the current month, budgeted production is

$3,500$ units of finished goods and budgeted direct labor costs are

$$117,600.$ Actual production is $3,350$ units, actual direct labor costs are

$$111,850,$ and actual direct labor hours worked are $6,450$ hours. The

direct labor standard is $2\mathrm{.}0$ hours per unit of finished goods. What is

the direct labor rate variance?

$$1,130$ Favorable

$$3,490$ Favorable

$$2,950$ Favorable

$$5,750$ Favorable