Shia Company makes a product that is expected to require 6 hours of labor per unit of product. The standard cost of labor is $5.80. Shia actually used 6.10 hours of labor per unit of product. The actual cost of labor was $5.90 per hour. Shia made 1,200 units of product during the period. Based on this information alone, the labor price variance is:

Multiple Choice

• $732 unfavorable.

• $732 favorable.

• $720 favorable.

• $720 unfavorable.