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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
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
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