The production of Saunders Company during July involved actual direct labor costs of $$56,373$ for $4,300$ direct labor hours. The budget for the July level of production called for $4,400$ direct labor hours at $$13\mathrm{.}10$ per hour, using a standard cost system.

The company's labor rate variance for July is:

Multiple Choice

$$1,267$ Unfavorable.

$$1,310$ Favorable.

$$43$ Unfavorable.

$$1,267$ Favorable.