The following data are given for Harry Company:

Budgeted production 1,054 units

Actual production 924 units

Materials:

Standard price per ounce $1.892

Standard ounces per completed unit 10

Actual ounces purchased and used in production 9,517

Actual price paid for materials $19,510

Labor:

Standard hourly labor rate $14.70 per hour

Standard hours allowed per completed unit 4.0

Actual labor hours worked 4,759

Actual total labor costs $77,334

Overhead:

Actual and budgeted fixed overhead $1,102,000

Standard variable overhead rate $24.00 per standard labor hour

Actual variable overhead costs $133,252

Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.)

The direct labor rate variance is

a. $23,002.80 favorable

b. $23,002.80 unfavorable

c. $7,376.45 unfavorable

d. $7,376.45 favorable