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Rams manufactures t-shirts. During January, the budgeted direct labor hours are 1,960, and the actual direct labor hours are 2,120. The budgeted labor costs are

Rams manufactures t-shirts. During January, the budgeted direct labor hours are 1,960, and the actual direct labor hours are 2,120. The budgeted labor costs are $27,440, and the actual labor costs are $27,000. Rams sold 4,513 t-shirts in January at a price of $21.5 per t-shirt. The budgeted revenue is 4,200 t-shirts or $84,000 for January. What is Rams output quantity variance for January? Please choose the closest answer.

Group of answer choices

$6,260 Favorable

$6,770 Favorable

$2,680 Favorable

$2,240 Favorable

$6,770 Unfavorable

$2,240 Unfavorable

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