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Roman Mfg.'s July production involved actual direct labor costs of $32,508 for 2,800 direct labor hours. The budget for the July level of production called for 2,900 direct labor hours at $11.60 per hour, using a standard cost system.

Roman's labor rate variance for July is:

Multiple Choice

• $1,132 unfavorable.

• $1,160 favorable.

• $28 unfavorable.

• $1,132 favorable.