TB MC Qu. 21-108 (Algo) A company uses the following...

A company uses the following standard costs to produce a single unit of output.

Direct materials	8 pounds at $0.70 per pound =	$ 5.60
Direct labor	0.6 hour at $10.00 per hour	6.00
Manufacturing overhead	0.6 hour at $4.70 per hour	2.82

During the latest month, the company purchased and used 76,000 pounds of direct materials at a price of $0.80 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $55,100 based on 5,800 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $25,200 and fixed manufacturing overhead incurred was $17,000. Based on this information, the total direct labor variance for the month was:

Multiple Choice

• $4,900 favorable

• $2,900 favorable

• $2,000 unfavorable

• $2,000 favorable

• $2,900 unfavorable