The following data is given for the Harry Company:

Budgeted production

26,000 units

Actual production

27,500 units

Materials:

Standard price per ounce

$6.50

Standard ounces per completed unit

8

Actual ounces purchased and used in production

228,000

Actual price paid for materials

$1,504,800

Labor:

Standard hourly labor rate

$22 per hour

Standard hours allowed per completed unit

6.6

Actual labor hours worked

183,000

Actual total labor costs

$4,020,000

Overhead:

Actual and budgeted fixed overhead

$1,029,600

Standard variable overhead rate

$24.50 per standard labor hour

Actual variable overhead costs

$4,520,000

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

The direct labor rate variance is

a) $5490 unfavorable

b) $5490 favorable

c) $33,000 favorable

d) $33,000 unfavorable