The direct labor rate variance is

a.$20,176.31 favorable

b.$8,586.27 favorable

c.$8,586.27 unfavorable

d.$20,176.31 unfavorable

The following data is given for the Harry Company: Budgeted production Actual production Materials: 1,010 units 942 units $1.95 12 Standard price per ounce Standard ounces per completed unit Actual ounces purchased and used in production Actual price paid for materials 11,643 $23,868 Labor: Standard hourly labor rate $14.48 per hour 4.3 4,851 Standard hours allowed per completed unit Actual labor hours worked Actual total labor costs Overhead: $78,829 Actual and budgeted fixed overhead $1,122,000 $25.00 per standard labor hour Standard variable overhead rate Actual variable overhead costs $135,828 Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.)