The Davidson Corporation produces clocks. According to company standards, it should take 2 hours of direct labor to produce a clock. Davidson's standard labor cost is $19 per hour. During June, Thomas produced 6,200 stopwatches and used 13,500 hours of direct labor at a total cost of $260,000. What is Thomas' direct labor rate variance for June?

A.

$3,500 favorable

B.

$1,607 favorable

C.

$1,607 unfavorable

D.

$3,500 unfavorable