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The following information is available for Allen Company. $15.00 standard wage rate per direct labor hour $220,000 Actual direct labor wages 14,000 Standard direct labor

The following information is available for Allen Company.

$15.00 standard wage rate per direct labor hour

$220,000 Actual direct labor wages

14,000 Standard direct labor hours for output produced

13,000 Actual direct labor hours worked

Given this information, the labor RATE variance is

  • $15,000 unfavorable

  • $25,000 unfavorable

  • $10,000 favorable

  • $25,000 favorable

  • $15,000 favorable

  • $10,000 unfavorable

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