TB MC Qu. 21-106 A company uses the following... A company uses the following standard costs to produce a single unit of output. Direct materials Direct labor Manufacturing overhead 6 pounds at $1.20 per pound 0.60 hour at $8.00 per hour 0.60 hour at $4.90 per hour $7.20 $4.80 $2.94 During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of $1.5 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $44,891 based on 5,830 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $26,400 and fixed manufacturing overhead incurred was $13,000. Based on this information, the direct labor rate variance for the month was: Multiple Choice $1,360 favorable Multiple Choice $1,360 favorable $3,109 favorable $1,749 favorable $3,109 unfavorable $1,360 unfavorable