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Use the following data to find the direct labor rate variance if the company produced 3,500 units during the period. Direct labor standard (4 hrs.

Use the following data to find the direct labor rate variance if the company produced 3,500 units during the period.

Direct labor standard (4 hrs. @ $7.00/hr.) $ 28.00 per unit
Actual hours worked 11,850
Actual rate per hour $ 7.40

Multiple Choice

  • $4,740 unfavorable.

  • $5,600 unfavorable.

  • $5,600 favorable.

  • $15,050 favorable.

  • $4,740 favorable.

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