THE FOLLOWING INFORMATION SHOULD BE USED FOR QUESTIONS 16 AND 17.

Claire Company uses a standard cost system. The followinginformation pertains to direct labor costs for the month of February.

Standard direct labor rate per hour $15.00

Actual direct labor rate per hour $13.50

Labor rate variance $18,000 favorable

Actual output 1,000 units

Standard hrs allowed for actual production 10,000 hours

What is the total labor budget variance for Claire Company?

Question 16 options:

A)	$18,000 favorable

B) $12,000 favorable

C) $18,000 unfavorable

D) $12,000 unfavorable