Question $18$

$3\mathrm{.}6$ pts

Adair Corporation uses a standard cost system for the production of its products. The direct labor standard for each unit is $0\mathrm{.}9$ hours. The standard direct labor cost per hour is $$7\mathrm{.}20.$ During the month of May, Adair's production used $6,600$ direct labor$-$hours at a total direct labor cost of $$48,708.$ This resulted in production of $6,900$ units for May. What is Adair's labor rate variance for May?

$$2,160$ Favorable

$$1,188$ Unfavorable

$$2,808$ Unfavorable

$$972$ Favorable