The following data relate to product no. 338 of Voluntown Company: Direct labor standard: 6 hours at $15 per hour Direct labor used in production: 51,000 hours at a cost of $775,200 Manufacturing activity: 8,400 units completed The direct-labor rate variance is:

Multiple Choice

• None of the answers is correct.

• $10,200U.

• $10,080U.

• $10,080F.

Cost standards for one unit of product no. C1895:
Direct material	3 pounds at $2.70 per pound	$	8.10
Direct labor	7 hours at $7.70 per hour		53.90
Actual results:
Units produced	5,600 units
Direct material purchased	26,200 pounds at $2.90	$	75,980
Direct material used	16,500 pounds at $2.90		47,850
Direct labor	40,300 hours at $7.50		302,250

Assume that the company computes variances at the earliest point in time. The direct-labor rate variance is:

Multiple Choice

• $8,060U.

• $7,804F.

• $7,804F.

• None of the answers is correct.

• $8,060F.