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The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of

The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of August:

Actual cost of direct material purchased and used: $88,400

Material price variance: $3,400 unfavorable

Total materials variance: $23,900 unfavorable

Standard cost per pound of material: $5

Standard cost per direct labor-hour: $5

Actual direct labor-hours: 8,100 hours

Labor efficiency variance: $2,500 favorable

Standard number of direct labor-hours per unit of Roff: 2 hours

Total labor variance: $1,550 unfavorable

The labor rate variance was:

A. $950 unfavorable

B. $4,050 favorable

C. $4,050 unfavorable

D. $950 favorable

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